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Smithsonian Institution 





Alexander Wetmore 

i C} 4 6 Sixth Secretary 1953 

m u 




Panama to Patagonia 


*° Panama to Patagonia 

The Isthmian Canal 

And the W^est Coast Countries of 
South America 

Charles M. Pepper 

Author of "Tomorrow in Cttba" 

With Maps and Illustrations 


A. C. McClurg m Co. 



A. C. McClurg & Co. 


Entered at Stationers' Hall 

Published March 24, 1906 




Mz Wife 


iH2 daughter 



MY purpose in this work is to consider and de- 
scribe the effect of the Panama Canal on the 
West Coast countries of South America from the year 
1905. At this period its construction by the United 
"States may be said to have begun. If my own deep 
conviction that this influence makes powerfully for 
their industrial development and their political stability 
be an illusion, the pages which follow may afford the 
disbelievers grounds for pointing out wrong premises 
or false conclusions. " We doubt " long has been the 
dogma of the North American and the European in 
everything relating to the permanency of progress in 
the Spanish- American Republics. " I believe " is yet 
only the creed of the individual. A huge material 
fact obtruding itself may secure a listening ear from 
the doubters. The Canal obtrudes. 

The severely practical Northern mind finds itself in 
a brain-fog with reference to the Southern Continent. 
Speculative reasoning regarding new forces of civiliza- 
tion does not appeal to it. It wants the concrete cir- 
cumstances. Now the Canal is not an abstraction. 
The industrial and commercial energies which it wakens 
are not abstractions. The interoceanic waterway is a 
national undertaking, but it shows the way to indi- 
vidual enterprise. More than the gates of chance are 


opened to American youth. They are the gates of 
opportunity. Consequently the need of knowledge. 

The number of recent books relating to the history 
of South America seems to indicate a demand for this 
knowledge in its primary form. They open the path 
for a volume which may be limited more strictly to 
industrial, fiscal, and political information. For that 
reason, while not overlooking the historical element in 
the institutions and governmental systems, I have not 
thought it necessary to consider them chronologically 
from the colonial epoch or even from the era of inde- 

The effort to divorce economic and social forces 
from places and peoples in order to analyze a prin- 
ciple usually is so barren that I have not attempted 
it. Places have their significance, and people are the 
human material. Customs and institutions are only 
understood properly in their environment. So many 
excellent descriptive works have been written about 
South America that I have sought to subordinate 
these features ; yet since the information applies to 
localities something about them could not entirely 
be omitted. Moreover, I have that abounding faith 
which leads me to look forward to the time when 
the engineering marvels of the Canal construction may 
prove enough of a magnet to draw thither the travelled 
American who would know what his country is doing 
and who, once on the Isthmus, will be likely to con- 
tinue down the West Coast with a view to determining 
the relative attractions of the noble Andes and the 
Alps. Yet I have made no attempt to preserve the 


form of continuous narrative. The treatment of the 
subject does not demand it. 

To South American friends who may be offended 
at the frankness or the bluntness of the views ex- 
pressed, a word may be communicated. The confi- 
dences extended me while on an official mission 
widened my own vision of the aspirations of their 
public men. At the same time they conveyed the 
idea that the economic evolution to which all look 
forward will come more swiftly if reactionary ten- 
dencies are combated more openly and aggressively. 
Opinions on the policy of the United States being 
uttered with freedom, I have not thought it necessary 
to adopt the apologetic attitude in regard to other 
Republics. In seeking the constructive elements in 
the national life and character of the South Ameri- 
can countries, it has been with the undisguised hope 
that the contact and the impact of North American 
character may be a reciprocal influence. 

Acknowledgment of material for the general map, 
which amplifies that of the permanent Pan-American 
Railway Committee, is due its chairman, Hon. H. G. 
Davis, whose faith in the future relation of the United 
States to the other American countries is an example 
to the generation which will share the benefits both of 
the Canal and of railroad construction. 

C. M. P. 

Washington, D. C. 
January, 1906. 




Philosophic Spanish- American View — Henry Clay's Mistaken Pop- 
ulation Prophecy — The Andes Not a Canal Limitation — 
Intercontinental Railway Spurs — Argentina and the Amazon 
as Feeders — Centres of Cereal Production — Crude Rubber — 
Atlantic and Pacific Traffic — Growth of West Coast Com- 
merce — North and South Trade-wave — Distances via Panama, 
Cape Horn, and the Straits of Magellan — Waterway Tolls 
and Coal Consumption — Ecuador and Peru — Bolivia and 
Chile — Isthmian Railroad Rates — Value of United States San- 
itary Authority — American Element in New Industrial Life . i 


Adopting Local Customs — Value of the Spanish Language — 
Knowledge of People Obtained through Their Speech — English 
in Trade — Serviceable Clothing in Different Climates — Mod- 
eration in Diet — Coffee at its True Worth — Wines and 
Mineral Waters — Native Dishes — Tropical Fruits — Aguacate 
and Cheremoya Palatal Luxuries — Hotels and Hotel-keepers — 
Baggage Afloat and Ashore — Outfits for the Andes : Food and 
Animals — West Coast Quarantines — Money Mediums — The 
Common Maladies and How to Treat Them 21 


Canal Entrance — Colon in Architectural Transformation — Un- 
changing Climate — Historic Waterway Routes — Columbus 
and the Early Explorers — Darien and San Bias — East and 
West Directions — Life along the Railway — Chagres River and 
Culebra Cut — Three Panamas — Pacific Mouth of the Canal 
— Functions of the Republic — Natural Resources — Agricul- 



ture and Timber — Road-building — United States Authority 
on the Zone — Labor and Laborers — Misleading Comparisons 
with Cuba — The First Year's Experience 37 



Tranquil Ship Life — Dissolving View of Panama Bay — The 
Comforting Antarctic Current — Seeking Cotopaxi and Chimbo- 
razo — Up the Guayas River — Activity in Guayaquil Harbor 

— Old and New Town — Shipping via the Isthmus and Cape 
Horn — Chocolate and Rubber Exports — Railway toward 
Quito — A Charming Capital — Cuenca's Industries — Cereals 
in the Inter-Andine Region — Forest District — Minerals in 
the South — Population — Galapagos Islands — Political Equi- 
librium — National Finances 57 


Pizarro's Landing-place at Tumbez — Last Sight of the Green 
Coast — Paita's Spacious Bay — Lively Harbor Scenes — An 
Interesting and Sandy Town — Its Climatic and Other Legends 

— Future Amazon Gateway — Sugar and Rice Ports — Eten and 
Pacasmayo — Transcontinental Trail — Cajamarca — Chimbote' s 
Naval Advantages — • Supe's Attractions — -Ancon's Historic 
Treaty — Callao's Excellent Harbor — Importance of the Ship- 
ping — Customs Collections — Pisco* s Varied Products — Rough 
Seas at Mollendo — Bolivian and Peruvian Commerce for the 
Canal 73 


Pleasing Historic Memories — Moorish Churches and Andalusian 
Art — Pizarro's Remains in the Cathedral — Transmitted 
Incidents of the Earthquake — The Palace, or Government 
Building — General Castilla's Humor — Decay of the Bull- 
fight — . Cultured Society of the Capital — Foreign Element 

— San Francisco Monastery — Municipal Progress — Chamber 
of Commerce — A Trip up the Famous Oroya Railway — 
Masterwork of Henry Meiggs — Heights and Distances — 
Little Hell — The Great Galera Tunnel — Around Oroya 
. — Railroad to Cerro de Pasco Mines — American Enterprise in 

the Heart of the Andes 89 




Capital of Southern Peru — Through the Desert to the Coast — 
Crescent Sand-hills — A Mirage — Down the Canon — Quilca 
as a Haven of Unrest — Arequipa Again — Religious Institu- 
tions — Prevalence of Indian Race — Wool and Other In- 
dustries — Harvard Observatory — Railroading over Volcanic 
Ranges — Mountain Sickness at High Crossing — Branch Line 
toward Cuzco — Inambari Rubber Regions — Puno on the Lake 
Shore 109 



Topography a Key to Economic Resources — Coast, Sierra, and 
Montana — Cotton in the Coast Zone — Piura's High Quality 
— Lima and Pisco Product — Prices — Increase Probable — 
Sugar-cane as a Staple — Probability of Growth — Rice as an 
Export and an Import — Irrigation Prospects — Mines in the 
Sierra — Geographical Distribution of the Deposits — Live-stock 
on the High Plains — Rubber in the Forest Region — Iquitos 
on the Amazon a Smart Port — Government Regulations for the 
Gum Industry 123 



Importance of River System — Existing Lines of Railroads — Pan- 
American Links — Lease of State Roads to Peruvian Corporation 
of London — Unfulfilled Stipulations — Law for Guaranty of 
Capital Invested in New Enterprises — Routes from Amazon to 
the Pacific — National Policy for Their Construction — Central 
Highway, Callao to Iquitos — The Pichis — Railroad and Navi- 
gation — Surveys in Northern Peru — Comparative Distances — 
Experiences with First Projects — Future Building Contempora- 
neous with Panama Canal 137 



Density of Population in Time of the Incas — Three Million In- 
habitants Now Probable — Census of 1876 — Interior Country 



Not Sparsely Populated — Aboriginal Indian Race and Mixed 
Blood — Fascinating History of the Quichuas — Tribal Cus- 
toms — Superstition — Negroes and Chinese Coolies — Im- 
migration Movements of the Future — Wages — European 
Colonization — Cause of Chanchamayo Valley Failure — Cli- 
matic and Other Conditions Favorable — An Enthusiast's Faith in 

Peru's growing stability 

Seeds of Revolution Running Out — Educated Classes Not the 
Sole Conservative Force — President Candamo's Peacemaking 
Administration — Crisis Precipitated by his Death — Triumph 
of Civil Party in the Choice of his Successor — President 
Pardo's Liberal and Progressive Policies — Growth in Popular 
Institutions — Form of Peruvian Constitution and Government 

— Attitude of the Church — Rights of Foreigners — Sources 
of Revenue — Stubborn Adherence to Gold Standard — Inter- 
oceanic Canal's Aid in the National Development . . . - . 164 



Arica, the Emerald Gem of the West Coast — Memorable Earth- 
quake History — A Future Emporium of Commerce for the 
Canal — Iquique the Nitrate Port — Value of the Trade — 
Antofagasta's Copper Exports — Caldera and the Trans- 
Andine Railway to Argentina — Valparaiso's Preeminence among 
Pacific Ports — Extensive Shipping and Execrable Harbor — 
Plans for Improvement — No Fear of Loss from the Interoceanic 
Waterway — Coal and Copper at Lota — Concepcion and 
Other Towns — Rough Passage into the Straits — Cape Pillar 

— Punta Arenas, the Southernmost Town of the World — 
Trade and Future 180 



Railway along Aconcagua River Valley — Project of Wheelright, 
the Yankee — Santiago's Craggy Height of Santa Lucia — A 
Walk along the Alameda — Historic and Other Statues — 
The Capital a Fanlike City — Public Edifices — Dwellings of 
the Poor — Impression of the People at the Celebration of 


Corpus Christi — Some Notes on the Climate — Habits and 
Customs — "The Morning for Sleep" — Independence of 
Chilean Women — Sunday for Society — Fondness for Athletic 
Sports — Newspapers an Institution of the Country . . . . 20 1 


Extensive Use of Nitrates as Fertilizers — Enormous Contributions 
to Chilean Revenues — Resume of Exportations — Description 
of the Industry — How the Deposits Lie — Iodine a By- 
product — Stock of Saltpetre in Reserve — The Trust and 
Production — Estimates of Ultimate Exhaustion — A Third of 
a Century More of Prosperous Existence — Shipments Not 
Affected by Panama Canal — Copper a Source of Wealth — 
Output in Northern Districts — Further Development — Coal 
— Silver Mines Productive in the Past — Prospect of Future 
Exploitation 217 


chile's unique political history 

National Life a Growth — Anarchy after Independence — Presi- 
dents Prieto, Bulnes, Montt, Perez — Constitution of 1833 — 
Liberal Modifications — The Governing Groups — Civil War 
under President Balmaceda — His Tragic End — Triumph of 
his Policies — Political System of To-day — Government by 
the One Hundred Families — Relative Power of the Executive 
and the Congress — Election Methods Illustrated — Eccle- 
siastical Tendencies — Proposed Parliamentary Reforms — 
Ministerial Crises — Party Control 23a 



Existence of the Roto Discovered — Mob Rule in Valparaiso — 
Indian and Caucasian Race Mixture — Disquieting Social 
Phenomena — Grievances against the Church — Transition to 
the Proletariat — Lack of Army and Navy Opportunity — Not 
Unthrifty as a Class — Showings of Santiago Savings Bank — 
Excessive Mortality — Need of State Sanitation — Discussion 
of Economic Relation — Changes in National Tendencies — 
Industrial Policies to Placate the Roto 248 



Agricultural Possibilities of the j Central Valley — Its Extent — 
Wheat for Export — Timber Lands of the South — Wool 
in the Magellan Territory — Grape Culture — Mills and 
Factories — Public Works Policy — Longitudinal and Other 
Railway Lines — Drawbacks in Government Ownership — 
Trans- Andine Road — Higher Levels of Foreign Commerce — 
Development of Shipping — Population — Experiments in 
Colonization — Internal and External Debt — Gold Redemption 
Fund — Final Word about the Nitrates 262 



Old Spanish Trail from Argentina — Customs Outpost at Majo — 
Sublime Mountain View — Primitive Native Life — Sunbeaten 
Limestone Hills — Vale of Santa Rosa — Tupiza's People and 
Their Pursuits — Ladies' Fashions among the Indian Women 

— Across the Chichas Cordilleras — Barren Vegetation — Ex- 
perience with Siroche, or Mountain Sickness — Personal Dis- 
comforts — Hard Riding — Portugalete Pass — Alpacas and 
Llamas — Sierra of San Vicente — Uyuni a Dark Ribbon on a 
White Plain — Mine Enthusiasts — Foreign Consulates . . . 278 



A Hill-broken Table-land — By Rail along the Cordillera of the 
Friars — Challapata and Lake Poopo — Smelters — Spanish 
Ear-marks in Oruro — By Stage to La Paz — Fellow-passengers 

— Misadventures — Indian Tombs at Caracollo — Sicasica a 
High-up Town, 14,000 Feet — Meeting-place of Quichuas and 
Aymaras — First Sight of the Famed Illimani Peaks — Char- 
acteristics of the Indian Life — Responsibility of the Priesthood 

— Position of the Women — Panorama of La Paz from the 
Heights — The Capital in Fact — Cosmopolitan Society . . 297 



Depression and Revival of Mining Industry — Bolivia's Tin De- 
posits and Their Extension — Oruro, Chorolque, Potosi, and 


La Paz Districts — Silver Regions — Potosi' s Output through 
the Centuries — Pulacayo's Record — Mines at Great Heights 

— Trend of the Copper Veins — Corocoro a Lake Superior 
Region — Three Gold Districts — Bismuth and Borax — Bitu- 
minous Coal and Petroleum — Tropical Agriculture — Some 
Rubber Forests Left — Coffee for Export — Coca and Quinine 

— Cotton 313 



Panama Canal as Outlet for Mid-continent Country — Railways 
for Internal Development — Intercontinental Backbone — Pro- 
posed Network of Lines — Use Made of Brazilian Indemnity 

— Chilean Construction from Arica — Human Material for 
National Development — Census of 1900 — Aymara Race — 
Wise Governmental Handling of Indian Problems — Immi- 
gration Measures — Climatic Variations — Political Stability 

— General Pando's Labors — Status of Foreigners — Revenues 
and Trade — Commercial Significance of Treaty with Chile — 
Gold Legislation — A Canal View 331 



John Quincy Adams' Advice — Canning's Trade Statesmanship 

— Lack of Industrial and Commercial Element — Excess of 
Benevolent Impulse — Forgotten Chapters of the Doctrine's 
History — The Ecuador Episode — President Roosevelt's 
Interpretation — Diplomatic Declarations — Spectres of Terri- 
torial Absorption — Change Caused by Cuba — Progress of 
South American Countries — European Attitude on Economic 
Value of Latin America — German and English Methods — 
Proximity of Markets to United States Trade Centres — 
Conclusion 351 

APPENDIX — Hydrographic Tables of Distances . . . 373 
INDEX 379 



A Mountain Bridge Frontispiece 

Scene on the Chagres River 10 

Swamp Section of the Canal 10 

The Atlantic Entrance to the Canal 10 

Abandoned Machinery — Two Views 1 8 

Pineapple Garden 28 

Banana Grove 28 

The De Lesseps House, Colon ....... 44 

Caribbean Cocoa Palms 44 

Panama Natives from the Swamp Country .... 50 

Panama Natives from the Mountains 50 

Ruins at Panama — Two Views 54 

The Waterfront at Guayaquil 60 

The Wharf at Duran . 60 

Weed-killer Plant, Guayaquil and Quito Railway . . 64 

Railway Spraying Cart 64 

Cacao Trees 70 

View of Mollendo Harbor and Railway Yards ... 86 

Interior of Cathedral, Lima 92 

Church of San Francisco, Lima 94 

Church of San Augustin, Lima 94 

Scene on the Oroya Railway, Chicla Station ... 98 
Scene on the Oroya Railway, San Bartolomew Switch- 
back and Grade 102 



Pyramid of Junin 106 

Independence Monument, Lima 106 

View of Arequipa and the Crater of El Misti . . . 114 

Ruins of an Inca Fortress at Cuzco 120 

A Farmhouse in the Forest Region 130 

View of Oroya, the Inter-Andine Crossroads . . . 142 

Group of Peruvian Cholos 154 

Portrait of Jose Pardo, President of Peru . . . . 170 

View of Arica 182 

Scene in the Harbor of Valparaiso, showing the Arturo 

Prat Statue 190 

View of Talcahuano 194 

Scenes at the Straits of Magellan ; Cape Pillar, the 

Evangelist Islands, and Cape Froward . . . . 198 

Scene on the Aconcagua River 202 

View of Los Andes 210 

The Roman Aqueduct on Santa Lucia, Santiago . . 214 

Group of Araucanian Indian Women 250 

" Christ of the Andes " 270 

Sandstone Pillars near Tupiza 286 

Bolivian Indian Women Weaving 292 

Aymara Indian Woman and Child 292 

Scene in the Plaza at Oruro 302 

Ancient Tombs at Caracollo 302 

Primitive Methods of Tin-crushing 302 

A Drove of Llamas on the Pampa 306 

View of the Cathedral, La Paz 310 

Gathering Coca Leaves in the Yungas — Two Views . 328 

Portrait of Ismael Montes, President of Bolivia . . . 344 


I. The United States and other American Countries 

— Transportation Routes 2 

II. General Plan of the Panama Canal . 38 

III. Peruvian Waterways and Railways . . . . 138 

IV. Bolivian Railway Routes 334 




Philosophic Spanish- American View — Henry Clay's Mistaken 
Population Prophecy — The Andes Not a Canal Limitation — 
Intercontinental Railway Spurs — Argentina and the Amazon 
as Feeders — Centres of Cereal Production — Crude Rubber 
— Atlantic and Pacific Traffic — Growth of West Coast 
Commerce — North and South Trade-wave — Distances via 
Panama, Cape Horn, and the Straits of Magellan — Water- 
way Tolls and Coal Consumption — Ecuador and Peru — 
Bolivia and Chile — Isthmian Railroad Rates — Value of 
United States Sanitary Authority — American Element in 
New Industrial Life, 

THE effect of the Panama Canal on the West 
Coast industrial development and the reciprocal 
influence of this South American progress on the water- 
way are economic facts. The citizen of the United 
States who would know the subject in a wider range 
than the mere gratification of his patriotic impulses and 
his national pride, should turn to the study of com- 
mercial geography, the potential political economy of 
unexploited natural resources. The European states- 
man, jealously watchful of trade conditions in the 
New World and the causes which modify them, will 
follow these channels without suggestion. 


Whether the digging of the Canal take ten, fifteen, 
or twenty years, does not affect its industrial value. 
The Spanish-American, with his inherited inertia and 
his lack of initiative, in waiting for to-morrow would 
be content if the work consumed half a century. 
What Humboldt prophesied of the Southern Con- 
tinent as the seat of future civilization, what Agassiz 
predicted of the Andean and the Amazon popula- 
tions, he is sure now will be realized. He even 
reverts to his favorite method of comparing the 
square miles of Belgium with the square miles of his 
own South American country, whichever one it may 
be, and exhibits the latter's possibilities for the human 
race by explaining the number of people it can sus- 
tain when it shall have as many inhabitants to the 
square mile as has Belgium. Yet while he believes 
that the destiny of the Southern Continent is at 
the threshold of realization, Yankee impatience only 
would amuse him. Since the interoceanic waterway 
and all its benefits are to be, what matter a few years ? 
Time, says the Castilian proverb, is the element. 
This philosophic Latin view may serve as a curb to 
fault-finding if the construction work on the Canal 
seems to halt while the engineering obstacles are 
studied and experiments are made in order to deter- 
mine the best means to overcome them. 

But though the Spanish-American, who is of the 
race that controls the West Coast countries of South 
America, is patient in his waiting for ultimate results, 
he does not fail to grasp the immediate effect. All 
the processes of the economic evolution unroll before 
his mental vision. For Colombia, Ecuador, Peru, 
Chile, and Bolivia, the standard already has been set, 

> i 



and the goal towards which they must work has been 
fixed. Their national policies and their commercial 
and industrial growth at once come under the stimulus 
of the waterway. "The Panama Canal," said the 
leader of public thought in one of the Republics, 
" will precipitate our commercial evolution. ,, It is 
the spring from which will gush the streams of 

In the present volume I shall have little to say of 
Colombia, for though the Isthmus of Panama is the 
reception-room of that country, the Canal is to be 
considered jointly with relation to the Caribbean and 
the Pacific shores. I include Bolivia because, while 
as a political division it is not ocean-bordering, geo- 
graphically it is a Pacific coast country on account of 
its outlet through Chilean and Peruvian seaports. 

Population in South America is not marked by 
periods of phenomenal increase. Henry Clay, in his 
generous pleas for the recognition of the struggling 
Republics, was led in the warmth of his imagination 
to foresee the day when they would have 72,000,000 
and we would have 40,000,000 inhabitants. The 
population of the United States was then less than 
10,000,000. Clay spoke when the resources of the 
Louisiana Purchase were still distrusted by many con- 
servative public men, and long before Daniel Webster 
had delivered his celebrated philippic against the Ore- 
gon region as a worthless area of deserts and shifting 
sands. Mindful of the slow growth in the Southern 
Hemisphere, I make no predictions of sudden leaps, 
but merely seek to indicate what proportion of the 
present and future inhabitants comes within the sphere 
of the Canal. 


The population of western Colombia and of 
Ecuador, Peru, Chile, and Bolivia is approximately 
11,000,000, dwelling chiefly along the seacoast. It 
has been assumed that only this long slope of almost 
continuous mountain wall from Panama to Patagonia 
is subject to the direct influence of the Canal, and 
that the barrier of the Andes makes all the rest of the 
South American continent dependent on Atlantic out- 
lets. The assumption is presumptuous. It is based 
on an unflattering lack of geographical knowledge 
and on a complete ignorance of political and economic 

The primary mistake is in considering the Coast 
Cordilleras as the principal chain. The great rampart 
of the Andes in places is hundreds of miles across. 
Productive plains and fertile valleys lie on the western 
side of the Continental Divide as well as on the Atlan- 
tic slope. Besides, there are many bifurcations of 
these lofty ranges which must be pierced toward the 
Pacific. The mineral belt with its incalculable wealth, 
after centuries only partially exploited, has its basis 
of profitable production and export by means of the 
water transport of the Pacific. And greatest of all the 
facts is the certainty that railways will bore through 
the granite ramparts in a westerly direction. The 
central spine or backbone of the Intercontinental or 
Pan-American trunk line is not all a dream, and from 
its links spurs will shoot out toward the Pacific. It 
would have been as reasonable to imagine that the 
Rocky Mountains could forever shut in the region 
between them and the Sierra Nevadas, barring all 
outlet to the Atlantic and the Gulf of Mexico, as to 
suppose that the Pacific Ocean from Panama south is 


everlastingly restricted to the fringe of coast for its 
commerce. This is in the industrial sense and aside 
from the reasons of national polity which by railway 
enterprises on the part of the various governments 
are causing the Andes to disappear. 

The grain fields and pastures of Argentina lie close 
to the Pacific. How close ? Within less than 200 
miles. The pampas of the western and northwestern 
provinces are from 500 to 1,200 miles distant from the 
Atlantic seaboard. The pressure of the agricultural 
population is westward. A generation — perhaps a 
decade — will bring it to the slopes of the Andes. 
The first railway to join the Atlantic and the Pacific, 
that from Buenos Ayres to Valparaiso, will be com- 
pleted by means of a spiral tunnel long before vessels 
are propelled through the Canal. 

But Valparaiso is far south, so far that, in the opin- 
ion of some authorities, it is the limit of the Canal 
radius. Let this be granted momentarily while the 
map is scanned. Place the thumb on the Chilean port 
of Caldera, 400 miles north of Valparaiso ; the index 
finger on Tucuman, and the middle finger on Cor- 
doba. The lines forking from these Argentine cities 
forecast the next chapter of railway expansion. Let 
it be known also that Nature, in kindly mood, has 
formed a saddle in the mountain range in this section, 
and that engineering surveys of routes through the 
depression are the basis of projects which only await 
a larger agricultural area under cultivation in order to 
become railway enterprises with an assured commer- 
cial basis. Both Cordoba and Tucuman will be in rail 
communication with the Pacific coast some years be- 
fore the waterway is finished. Nor are these the only 


trans-Andine lines in prospect. They serve the pur- 
poses of illustration, so that a description of the others 
may be omitted. I cite the first two in order that it 
may be known there is an Argentine relation to the 
Canal, and a highly important one as to population 
and as to the exports and imports which are the 
foundation of maritime and rail traffic. 

If this suggestion is new and strange, I follow it by 
a more startling proposition. As one result of the 
Panama Canal, a measure of Amazonian commerce 
will flow to and from the Pacific. 

To begin with, there is the nearness. By several 
trans-Andine routes the navigable affluents of the Ama- 
zon are less than 300 miles from the coast. Steam- 
ships of 800 tons navigate as far as Yurimaguas on 
the Huallaga River, which was the historic route of 
the Spaniards over the Continental Divide. Steam 
vessels also go up the Maranon from Iquitos, 425 miles 
to the Falls of Manserriche, which by several practi- 
cable railway routes are within less than 400 miles of 
the Bay of Paita. Minor Peruvian ports below Paita 
are able to offset its shipping advantages by shorter 
trails. Not more than 225 miles of difficult railway 
construction are necessary to open to a large section 
of the vast Amazon region the commerce of Callao, 
Peru's chief port. 

In relation to the Amazon as a feeder, it has to be 
recognized that the Andes form a greater obstacle than 
in Argentina, and that the river basins will be popu- 
lated much more slowly and never so densely as the 
Argentine pampas and sierras. But the mighty stream 
is within the sphere of the Canal, as I shall have oc- 
casion to explain more fully in subsequent chapters. 


For the present purpose a single illustration, perhaps 
fanciful, will answer. 

It may seem a far cry from the 200,000 telephones 
used by the farmers of Indiana, the trolleys which 
tangle their way through that State, and the automo- 
biles and bicycles which traverse the country roads, to 
the gum forests of South America. But the world's 
hunger for crude rubber is a growing one. Bicycles, 
the infinite variety of motors, electric lighting, and 
telephones, all demand more of this article ; and the 
55,000 tons, which was substantially the world's pro- 
duction in 1905, is insufficient for future needs. This 
increasing demand will stimulate the rubber production 
of an extensive region in northeastern Peru, and Peru 
has imperative reasons of national policy for wanting 
to turn that traffic down her own rivers, and across and 
over the Andes to the Pacific, instead of letting it flow 
out through Brazilian territory. Iquitos, the centre of 
this commerce, is 2,300 miles up the Amazon from 
Para, and Para is 3,000 miles from New York, a total 
of 5,300 miles by the all-water route. By river and 
future rail Iquitos is, at the furthest, 800 miles from 
Paita, and Paita, via Panama, is a little short of 3,100 
miles from New York ; so that the total distance is less 
than 4,000 miles. New Orleans by the isthmian route 
is within 3,300 miles of the Peruvian rubber metropolis. 

Instead of the Pacific commerce being limited to 
the seashore strip after the Panama Canal is dug, the 
view which receives attention in South America is the 
probable influence of the waterway in diverting traffic 
from the Atlantic to the Pacific. Trade may not be 
turned upstream, and commerce is slow to leave estab- 
lished lines of transportation, but trade-waves are not 


so fixed as isothermal lines. They may show varia- 
tions until the current finds its natural course to the 
newer markets created. 

I do not mean from this to infer that the aggregate 
commerce of the Atlantic coast countries of South 
America will be lessened by the Panama Canal. Tropi- 
cal Brazil, for an indefinite period, will continue to 
supply the bulk of the coffee consumed, and the mari- 
time movement will follow the existing courses of 
navigation. Temperate Brazil, the Argentine Repub- 
lic, and Uruguay will develop as the granary and the 
grazing-ground of the world in proportion as the 
United States consumes its own wheat and beef. Their 
exports increase with the widening of the market for 
these staple products. Political economists and crop 
statisticians have been slow to perceive that the exten- 
sion of the area of agricultural cultivation and the 
growth of population in this great cereal region de- 
pend more on the ability of Europe to take the sur- 
plus grain, beef, and mutton than on the demands for 
home consumption. Public men, especially in the 
Argentine Republic, in their measures for encouraging 
immigration also have neglected to take into account 
this overshadowing economic factor. But it explains 
why during certain periods immigration has been al- 
most stationary, while at other periods the incoming of 
settlers for the field and farm has been a rushing one. 
As a natural balance, therefore, for the diversion of 
traffic to the Pacific coast through the agency of the 
artificial waterway, the Atlantic slope has the certainty 
of steadily growing exports of agricultural products. 

As regards Argentina, the coming railways to the 
Pacific, of which I have made mention, mean that a 




quantity of the cereals, wool, and hides will find their 
outlet by these routes ; and a larger volume of the ex- 
change for them — farm tools, cottons and woollens, 
mineral oils, and miscellaneous merchandise — will ob- 
tain the cheaper and shorter transit through the Canal 
and down the West Coast. Thus, without damage to 
the Atlantic commerce, the Pacific coast traffic will 
form a larger proportion in the total of South Ameri- 
can commerce than in the past. This is especially 
true with reference to the United States. The trade- 
wave north and south may be accounted one of the 
phenomena of international intercourse. It is not 
tidal, but a brief comparison shows its growing vol- 
ume. In 1894 Argentina took from the United States 
goods to the value of $4,8 63,000, and sent in return 
products worth $3,497,000. In 1904 the exports were 
$10,751,000, and the imports $20,702,000, and in the 
following year they were increasing. 

The commercial relation of the West Coast coun- 
tries may better be exhibited by tabulation in the 
following form : 

Exports to United States 1 

Imports from United States 





Chile . . . 
Peru . . . 
Ecuador . . 





Total . . 





1 See Foreign Commerce of the United States, Annual Review, igoj. 



Here, within the extremes of the eleven years, is an 
increase in the foreign commerce between the West 
Coast countries named and the United States from 
$8,467,000 to $26,235,000 as measured by the annual 
volume. The growth continued in the subsequent 
twelvemonth. It is a forcible illustration of the north 
and south trade-wave movement. Under the further 
stimulus of the Canal for industrial development and 
commercial growth the contribution to traffic for the 
waterway will be not inconsiderable. 

An analysis of the West Coast foreign commerce 
for a given year shows it to have exceeded $21 1,000,000, 
with a rising tendency. The intercoast trade, which 
is included under the foreign head, may be placed at 
$11,000,000 to $12,000,000. There is left, therefore, 
approximately $200,000,000 of international traffic for 
Europe and the United States. 

If the international traffic were to remain station- 
ary, the amount that would be diverted from the Cape 
Horn or the Magellan route through the Canal would 
be important, but the overshadowing element in the 
waterway as an economic factor is the certainty of an 
increase in the foreign trade. The marked feature of 
the West Coast countries in recent years is the growth 
in consumptive capacity as shown by the imports, for 
the increase in population has not been large. Orien- 
tal trade may be diverted from other channels through 
the Canal, but western South American commerce may 
look for growth in volume on account of internal de- 
velopment of the countries which are tributary to it. 
In this view it may be doubted whether the estimate 
that 75 per cent of the Canal traffic will be between 
ports north of the same parallels of latitude will prove 

Swamp Section of the Canal — The Atlantic Entrance to 
the Canal — Scene on the Chagres River 


correct. The north and south trade-waves may be 
watched for an indication of the proportion of water- 
way freight that will go south, keeping in mind that 
New York is almost on a direct line north of the 
western South American ports. 

These West Coast markets may be studied with ref- 
erence to the shortening of distance. We may take 
the fact that from Colon to New York is 1,981 miles, 
and from Colon to New Orleans 1,380 miles ; add the 
48 miles of future waterway and then make our com- 
parisons of the ports along the coast — Guayaquil, 
Callao, Valparaiso — with the distance through the 
Straits of Magellan or around Cape Horn. We 
also may figure on the national policy of the United 
States, which will not be to treat the Canal as strictly a 
commercial proposition. The fixing of the toll rates 
is not near enough to furnish the basis of definite 
calculation any more than is the possibility of estimat- 
ing the total prospective tonnage each year, though 
the guesses have ranged from 300,000 to 10,500,000 

The steamers which ply between New York, Ham- 
burg, or Liverpool and the Pacific coast ports vary 
from 3,000 to 6,500 tons. That hardly may be taken 
as the measure of carrying capacity of the major part 
of the vessels which will pass through the Canal, but 
on such a basis the estimate may be made of the sav- 
ing in coal consumption, and the radius within which 
it will be cheaper to use the Canal than to double 
Cape Horn or thread the difficult and dangerous pas- 
sage through the Straits. For New Orleans, Mobile, 
and the other Gulf ports, the element of distance is 
not comparative, because heretofore no direct maritime 



movement between them and the West Coast of South 
America has been maintained. With the waterway 
once open the whole Mississippi Valley becomes the 
beneficiary. Nor does the talk of carrying coal and 
other cargoes from Pittsburg through Panama to 
Patagonia without breaking bulk appear fantastic. 

Variations in the steamers' courses are responsible 
for the differences in the tables of distances usually 
given, but they are not important. 1 The relation in 
nautical miles of the chief shipping-ports on the West 
Coast to trade centres may be set forth as follows : 



New York to Colon 

. 1,981 

Panama to Mollendo . . 

. 1,928 

Colon to Panama . . 

. . 48 

" " Arica .... 

. 2,161 

Panama to Guayaquil . 

. 835 

" " Iquique . . . 

. 2,267 

" " Paita . . . 

. 1,052 

" " Antofagasta 

. 2,418 

" Callao . . 

. 1,569 

" " Valparaiso . . 

. 3,076 

This brings Valparaiso within 5,100 miles of New 
York by way of Panama ; but with the omission of all 
the intervening ports except Iquique, Callao, and 
Guayaquil, it would be less than 5,000 miles. By 
way of the Straits the distance from Valparaiso is 
usually accounted 9,000 miles, touching at Monte- 
video and the Brazilian ports. When the Straits are 
avoided and Cape Horn is doubled, from the Cape to 
Pernambuco is 3,468 miles, and from Pernambuco tc 
New York 3,696 miles. Either by the Straits or 
around the Cape the total is almost twice the distance 
via Panama. 

Colon is 4,720 miles from Liverpool, and the rela- 
tive advantages of the West Coast ports between 
Valparaiso and Panama may be calculated in the 

1 See Appendix for tables of the Hydrographic Office of the United 
States Navy. 


proportion of their respective distances. From Valpa- 
raiso to Liverpool via Panama is 7,600 to 7,800 miles 
according to the vessel's schedule of wayports on the 
Pacific. From Valparaiso to Liverpool, through the 
Straits of Magellan, is 9,800 miles, touching at 
the Falkland Islands, and about 300 miles shorter 
by omitting them. 

For Hamburg the saving in distance by the isthmian 
route may be placed at 2,400 miles. Proceeding north 
from Valparaiso, the loss by Cape Horn is in inverse 
proportion. Fifteen hundred miles north of Valpa- 
raiso is the central Peruvian port of Callao, which 
therefore has 3,000 miles' gain in distance by Panama 
to Hamburg instead of by Cape Horn. 

I have given these general figures before reciting 
details on the maritime commerce of the various coun- 
tries. They show how the economic value of the 
Canal to them is primarily a question of subtraction, 
— the difference between the coal needed on the 
longer sea voyage and the Canal tolls. But the ques- 
tion of the return cargo also enters into the calculation 
and is distinctly in favor of the waterway, as is also 
that of the duration of maritime insurance. 

No statistics are available which show the commerce 
of the western departments of Colombia; and the un- 
settled state of that country for years past gives no 
index of what its potential traffic may be. But the 
valley of Cauca in its variety of agricultural and min- 
eral resources is a kingdom in itself. It is a future 
commercial feeder to the Canal. 

The foreign trade of Ecuador amounted in the latest 
available year to $1 9,000,000.* Substantially all of it 

* Statistics obtained by New York Chamber of Commerce for 1904. 


constitutes what might be called light freight, and a part 
of it now goes across the Isthmus by transshipment. 
Yet the portion which follows the longer route around 
Cape Horn or through the Straits is not small. The 
traffic flows through Guayaquil as in a single stream. 
Guayaquil, by way of Panama, is 2,864 miles from New 
York and 1,263 miles from New Orleans ; by the 
Cape Horn route it is 11,470 miles to New York. 
The entire foreign commerce of Ecuador in the future 
is for the Panama Canal, except the excess which fol- 
lows up the coast to San Francisco and beyond. 

The foreign commerce of Peru may be placed 
above #40,000,000 annually. 1 The bulk of the traffic 
is now via the Straits of Magellan and Cape Horn. 
From Callao to New York, by way of Cape Horn, is 
10,700 miles. By way of Panama it is 3,600 miles, 
only a little longer than from New York to San Fran- 
cisco or from New York to Mexico City by the trans- 
continental railroad lines. In reference to Peru, it 
also is to be noted that the heaviest exports are from 
the ports north of Callao. Sugar is the largest marine 
freight in quantity, and this comes from Salaverry and 
other ports fully 500 miles north. Much of this raw 
sugar is now carried around Cape Horn, though some 
of it is left at the Chilean ports to be refined for the 
West Coast consumption. When the Canal is opened, 
with the exception of this Chilean traffic, all the raw 
sugar of Peru will be shipped through it to New 
Orleans, New York, or Liverpool. 

Through the port of Mollendo, 360 miles south 
of Callao, come the ores, the metals, and the wools, 

1 Estimated on the basis of the calendar year 1904, when the total 
was $41,000,000, according to the report of the British Consul General. 


both of southern Peru and of Bolivia. Some of the 
minerals may continue their course around the Horn, 
and also the guano which Peru in the future may- 
export, but not all of these cargoes will find the longer 
route cheapen All the wools will take the shorter 
route. Some wool is sent up the coast and trans- 
shipped across the Isthmus by the railways. This 
method is also followed in the shipment to Liverpool 
of some of the raw cotton raised in southern Peru. 
The whole of this light freight is traffic for the inter- 
oceanic waterway. 

Bolivian commerce finds its outlet and inlet, chiefly 
through Chilean and Peruvian seaports, to the amount 
of $ 1 8,000,000 a year. Small as this is, the bulk of 
it follows the Cape Horn and Magellan routes, though 
some of the European merchandise is imported on the 
Atlantic slope through Argentina. The silver and 
copper ores are transported principally through the 
port of Antofagasta, which is 650 miles north of Val- 
paraiso. For the mineral freights, Canal tolls may 
neutralize the advantage of the shortened distance via 
Panama to Liverpool, or may not compensate for the 
lessened coal consumption. But whether they do or 
not, the general merchandise from England and from 
Germany, not being bulky, will have the shorter course 
and probably the cheaper one on the return voyage 
through the Canal. 

But Antofagasta, though of growing importance, 
is not likely to be indefinitely the chief port of export 
for Bolivia. The building of a railway from the great 
central plateau to Arica makes it certain that the 
copper output of Bolivia, much of the tin, and part of 
the silver product in time will be shipped through 


that port, while it will be a natural inlet for imported 
merchandise. Arica is so close to Mollendo — only 
233 miles — that with regard to distances it may be 
considered on the same basis. The mineral and other 
internal developments, which are to fix the industrial 
status of Bolivia and which I shall have occasion to 
discuss in subsequent chapters, have a very direct 
relation to the facilities that will be afforded by the 
isthmian waterway. 

Formerly it was thought that Chile would be 
seriously harmed by the Panama Canal. In the com- 
mercial sense this supposition does not bear scrutiny. 
Chile's foreign trade is approximately $130,000,000 
annually, with a tendency to reach $150,000,000. By 
far the heaviest proportion of this commerce is the 
shipments of the nitrates of soda or saltpetre fertilizers. 
Iquique is the principal shipping-point. The sailing- 
ships are the cheapest carriers for these bulky cargoes, 
and tolls based on tonnage may make it unprofitable 
to transport a large portion of them through the 
interoceanic channel. There is also the other con- 
sideration that the vessels which bring coal to the 
Chilean ports from Australia and from Newcastle 
secure their return cargoes of nitrates. These fer- 
tilizers being a natural monopoly, Chile will have 
the benefit of the industry, and the Panama Canal 
in no way can lessen this traffic. In its permanent 
effect the waterway can have little influence on the 
nitrates, because the deposits will be worked out 
not many years after its completion. Within a third 
of a century, or forty years at the furthest, the 
exhaustion of the saltpetre beds will have begun, 
and the cargoes of fertilizers will be lessening before 


that time. 1 In any aspect of the broad future of 
the Canal and its effect on the West Coast, the 
nitrates of Chile need not be considered as an in- 
fluencing factor. 

But it may be said that until the interoceanic canal 
is actually open these subjects are too remote to call 
for immediate consideration. This view does not hold 
when analysis is made of the swift recognition of its 
effect by South American countries. There are present- 
day influences which are clear enough to be taken into 

For the entire West Coast there is at once a bene- 
ficial result in having the Canal an enterprise of the 
United States government. This is the equal treat- 
ment which must be accorded all the steamship 
companies in transshipping freight over the Panama 
Railway. The line was operated in the interest of 
the transcontinental railroads to prevent competition. 
Under this arrangement little regard was shown for the 
traffic from the coast south of Panama. The result of 
the control of the isthmian railway line by the transcon- 
tinental roads was against encouraging the steamship 
lines to seek to increase their freight between Val- 
paraiso and the intervening ports to Panama for trans- 
shipment, because the Panama Railway exacted what 
it pleased. 2 With the stock of the company vested in 

i See Chapter XIV, Nitrate of Soda. 

2 In the memorial presented in 1905 to the United States government by 
the diplomatic representatives of various South American Republics, asking 
for fair treatment in Panama railroad rates, these statements were made : 

It may be calculated that the most distant ports of our respective Re- 
publics are from New York, 4,500 miles, via Panama. From those same 
ports to New York there is a distance of over 11,000 miles, via Magel- 
lan } and, nevertheless, the transportation by this last route and the trans- 


the United States, hereafter all traffic agreements must 
be made on the basis of equality. This is a very 
important factor in the tendency of the West Coast 
countries to mould their national policies for indus- 
trial development and commercial expansion. It en- 
ables them to enjoy some of the benefits of the Canal 
without waiting for its completion. It means more 
shipping from the year 1906 on. 

An international good also comes from the presence 
of the United States on the Isthmus in the capacity of 
a sanitary authority. It will not be hampered, as at 
home, by state quarantine systems. The example of 
what it is doing at Panama will be of immense benefit 
to all the ports south to Valparaiso. Its resources 
and its assistance will be at the disposal of the various 
governments which may seek its aid. With them power 
is centralized, and they will be able to cooperate effect- 
ually. The International Sanitary Bureau, with head- 
quarters in Washington, for which provision was made 
by the Pan-American Conference held in Mexico, may 

portation by steamer from our ports to Europe, are on an average from 25 
to 30 per cent cheaper than our commerce with New York via Panama. 

The Peruvian sugar pays, by the Isthmus, 30 shillings sterling a ton, 
and 23 shillings sterling a ton via Magellan. 

The cacao of Guayaquil, via Panama, pays to Europe from 52 to 58 
shillings a ton, and to New York 65 to 68 shillings a ton. 

From Hamburg shipments of rice from India are constantly being 
made to Ecuador, via Panama, at the rate of from 30 to 33 shillings 
sterling per ton of 2,240 pounds, or, say, from $7.5° to $% P er ton 5 
while the same article from New York pays at the rate of $0.60 per 100 
pounds, or, say, $13.20 per ton, — an overcharge of almost 75 per cent. 
Twelve coal-oil stoves, which in New York, free-on-board, cost from 
$45 to $48, pay on the coast of Ecuador and of Peru 30 and 37^ 
cents, respectively, per cubic foot, or, say, $19.20 to $21, which repre- 
sents 42.66 per cent upon the cost price. The same article bought in 
Germany would pay a freight of from $6.40 to $6.75. 



Abandoned Machinery 


become a vital force through this means. Epidemics 
and plagues, of which the most malignant is the yellow 
fever, may never be entirely wiped out, but that their 
area can be restricted and their ravages infinitely les- 
sened will be demonstrated by a few years' experience. 
Commerce will be immensely the gainer, and the trade 
of the West Coast may look for a steady and natural 
growth in proportion as the epidemic diseases of the 
seaports are controlled. 

The influence of the gold standard of Panama will 
be helpful to commerce, though it will not in itself 
cause the several Republics which are on a silver or 
a paper basis to change to gold. But they will be 
benefited by being neighbors to financial stability. 
Uniformity of exchange will be promoted, and the 
inconveniences of travellers will be lessened. The 
fact that the currency of the United States is legal 
tender in the Panama Republic will help merchants 
and shippers at home, who heretofore have had to 
make their transactions entirely on the basis of the 
English pound sterling or the French franc. 

In an outline of the general subject some attention 
should be paid to the inevitable overflow of energy 
and capital after they once become engaged in build- 
ing the waterway and in supplementary projects. No 
one who understands the constructive American char- 
acter doubts that the capitalists and contractors en- 
listed in the work will fare forth to seek other fields. 
It happens that coincident with the beginning of the 
Canal construction by the United States, the West 
Coast countries are entering upon definite policies of 
harbor and municipal improvements and other forms 
of public works, including railway building. There 


is also the new era of the mines. The industrial im- 
pulse is one of the immediate economic effects of the 
Canal. It appeals to the American spirit. It will 
find a quickening response. In subsequent chapters 
I therefore venture to indicate its field of activity, with 
such suggestions as may be of practical worth. 



Adopting Local Customs — Value of the Spanish Language — 
Knowledge of People Obtained through Their Speech — 
English in Trade — Serviceable Clothing in Different 
Climates — Moderation in Diet — Coffee at its True 
Worth — Wines and Mineral Waters — Native Dishes — 
Tropical Fruits — Aguacate and Cheremoya Palatal Luxu- 
ries — Hotels and Hotel-keepers — Baggage Afloat and 
Ashore — Outfits for the Andes : Food and Animals — West 
Coast Quarantines — Money Mediums — The Common 
Maladies and How to Treat Them 

TO live as they live ; to travel as they travel ; — that 
is about all there is to living and travelling in 
South America and on the Isthmus. 

All the customs will not be adopted by Northerners, 
nor all the habits followed. More comfort will be 
demanded and more cleanliness. But the general fact 
holds that the people living in any country have 
acquired by experience the knowledge of what is re- 
quired by climatic and other conditions in regard to 
food, drink, dress, shelter, and recreation. There 
is reason for all things, even for the adobe tomb 
dwellings of the aboriginal Indians of Bolivia, or the 
mid-day siesta of the busy merchant of Panama. 

First of all, it is desirable to know the language. 
Spanish is the idiom of South America, with the ex- 
ception of Brazil. At the outset let me say that the 
chance traveller who wants to go down the coast or 


even take an occasional trip into the interior can get 
along with his stock of English. In all the seaport 
towns are English-speaking persons, merchants or 
others. On the ships English is as common as 
Spanish, and in some of the obscurest places the 
tongue of Chaucer may be heard. In one of the 
most out-of-the-way and utterly forsaken little holes 
on the coast, I found the local official who was 
sovereign there teaching his boy arithmetic in Eng- 
lish. He had been both in England and in the 
United States, and while his own prospects now were 
bounded by the horizon of the cove and the drear 
brown mountain cliffs that shut it in, he was deter- 
mined that his son should have a wider future. There 
are also many young South Americans who have been 
educated in the United States and some of whom are 
met at almost inaccessible points in the interior. 

I state this so that no one who contemplates a 
journey may be turned away from it by any supposed 
difficulty in getting along through inability to speak 
the prevailing idiom. He can do very well. Yet 
with all his faculties of observation alert he will miss 
much through his ignorance of the readiest mode of 
conveying and receiving thought. To know any 
country it is necessary to know the people, and the 
people are only known through the medium of their 
speech. Their customs are better understood, their 
limitations are appreciated, and their strivings for 
something better, if they have any, are interpreted 
sympathetically. The paramount local topic becomes 
a living theme into which the visitor can enter under- 
standing^ and add to his stock of knowledge. 

Let me say, also, that wherever trade is, there is the 


English language, and as commerce grows it will spread. 
The terse English business letter is the admiration of 
the Latin-American merchant. Yet there is no wilder 
notion than that trade will advance itself without the 
knowledge of the language of the country into which 
it is pushing. Many native mercantile houses have 
English-speaking clerks, or occasionally a member of 
the firm knows the idiom. But the commercial trav- 
eller from the United States who does not speak 
Spanish never will compete with his German rival who 
talks trade in all known tongues. 

This, in brief, is the commercial situation as to the 
English language. The business man who waits for 
Spanish America to come within its sphere as the world 
language, will not achieve success in this generation. 

For those who look forward to a future in South 
America, either in trade or in industrial enterprises, 
there is only one word of advice to be given : that 
is, to learn Spanish and to learn it at once. Diffident 
as the North American is about foreign tongues and 
badly as he speaks any language except his own, there 
is little reason why his self-distrust or his contempt for 
other nationalities should keep him from acquiring 
Spanish. " It is pronounced as written and is written 
as pronounced." Colloquially it is the easiest of 
tongues to master. Since every letter is sounded and 
is always pronounced the same, there is no trouble 
with the syllables and there are no such difficult 
sounds as the German umlaut or the French cc en." 
The high-sounding expressions, while they seem very 
formal and complicated, are quickly acquired, and the 
habit of thinking of the greetings of the day and simi- 
lar commonplace topics in the strange tongue comes 


more easily than is imagined. With practice any 
fairly persistent person can get enough of Spanish to 
avoid the cumbersome process of thinking in English 
and then translating his thoughts. A vocabulary of 
2,000 words is an ample one for the purposes of 
every-day life. 

The oaths need not be learned. The English ex- 
pletives are expressive enough not to need translation, 
and they lack the suggestive obscenity of the Span- 
ish objurgations. It is good to learn " Carambal " in 
all the tones and inflections and to stop there. 

The phrase-book may be studied without ridicule, 
and every opportunity be taken for putting its pre- 
cepts to the test. I do not mean from this to indi- 
cate that a thorough knowledge of Spanish can be 
gained in such manner, or that the Yankee ever will 
master the noble and stately literary language of Cer- 
vantes, Calderon, and Lope de Vega. He will not 
need to use the literary language. If he have a 
chance to secure his first training in Bogota or Lima, 
that will be an unusual advantage, for it is in those 
capitals that the purest Spanish of the New World is 
spoken. But this is not necessary, and if it be his 
misfortune to learn the rudiments through an unedu- 
cated Chilean or Argentine source, even that harsh 
and choppy Spanish will be understood. By all this 
I mean the practical tool of the tongue in common 
use, and not the melodious Castilian that may be de- 
sirable in polite society. 

It is a very decided advantage to know enough of 
the written language to read the newspapers, an occa- 
sional book by a native author, the steamship sched- 
ules, the railway time-tables, the proclamations and 


official decrees, and the advertising posters. All 
serve their purpose to the man who has business or 
who would be in touch with his surroundings. It is 
true that in the interior the Indian tribes adhere to 
their own dialects and the majority of South Ameri- 
can Indians do not understand Spanish. But the 
officials everywhere speak it, and in the Indian vil- 
lages there is a head man, or cacique, who knows the 
idiom of the master race. If they are not familiar 
with Spanish, the sounds of English are even more 
strange to them. 

Dress for sea voyages is easily determined, but 
clothing for land and sea is a more difficult question. 
My own experience, and I think it is the experience 
of other travellers, has been that woollens are the most 
serviceable in all climates. In the cold regions they 
are essential. In the tropics, when loosely woven, 
they are comfortable. Where the pure wool is dis- 
agreeable to the wearer, a mixture of cotton in the 
garment may serve. Flannels are the best protection 
against an overheated body and quick changes of 
temperature. These hints apply to all places, all 
times, and all conditions. 

For the rest, although the Anglo-Saxon newcomer 
sometimes assumes otherwise, the people of all the 
West Coast cities are civilized and accustomed to the 
usages of polite society. Men wear the conventional 
dress suit, or traje de etiqueta, on formal occasions. The 
six o'clock rule does not hold in Spanish-American 
countries. Official functions, weddings, and similar 
social gatherings call for the dress suit as early as tQn 
o'clock in the morning. But the visitor in this matter 
may consult his own convenience to some extent, 


regardless of local customs. The professional classes, 
doctors and lawyers especially, have a habit of uphold- 
ing their dignity by wearing the tall hat and the frock 
coat in the hottest seasons. It is rather a tradition 
than a requirement of good breeding. The traveller 
may ignore it without losing social caste. 

In the matter of eating and drinking moderation is 
a rule which slowly impresses itself on foreigners. As 
to drinking, the Englishman on the West Coast has 
not yet learned temperance. He absorbs vast quan- 
tities of brandy and soda, or of whiskey and water, 
with the soda or water always in infinitesimal amounts. 
He has his excuse for it, — the loneliness of his exile, 
the climate, and so forth. But he also has a counter- 
irritant for the drink habit in his fondness for the 
manly outdoor sports which he practises as regularly 
as at home. 

French wines may be procured anywhere in South 
America, but it is not always well to trust the labels. 
A fair native wine is made in Peru, and Chile pro- 
duces an unusually good article. If the quality of 
the claret is not quite equal to Medoc, it is good 
enough for any one except a connoisseur. English 
ales also are to be had, and of recent years bottled 
St. Louis or Milwaukee beer can be obtained at all 
the larger places. I have found St. Louis beer up 
in the Cerro de Pasco mining regions of Peru. All 
of the countries have local breweries, but Americans 
do not like the brew. 

Mineral waters, which are to be "had everywhere, 
in time come to pall on the palate. They may be 
alternated with the wines or other beverages satis- 
factorily. There is a native drink called chicha> a 


distillation of corn fermented in lye, which is refresh- 
ing and strengthening and tastes like fresh cider. 
The subjects of the Incas refreshed the Spanish con- 
querors with this drink. It is celebrated in song, — 
" O nectar sabroso" Yet a word of warning — to 
enjoy chicha a second time and other times, make 
no inquiry and take no thought of how it is prepared. 
Always imbibe it from a gourd. 

The aboriginal thirst of the Indians and also of 
the mestizos, or half-breeds, is for raw alcohol. This 
thirst is satisfied by the aguardiente, or cane rum. 
It demoralizes the native population, and is a curse 
with which the governments are unable to cope. 
When the rum cannot be obtained, some other form 
of alcoholic spirits is provided. 

The Continental custom as to meals obtains both 
in the tropical parts of the West Coast and in the 
colder climates, as in Bolivia and Chile. There is 
simply breakfast, or the mid-day meal, and dinner. 
In the morning coffee and rolls — or with most of 
the Spanish-Americans, coffee and cigarettes — are the 
sole refreshment which is expected to carry one through 
till noon. Americans, however, usually procure fruit 
and eggs. Coffee-making and coffee-drinking are arts 
unknown to the Yankee. Travel in South America is 
a liberal and much-needed education in this respect. 

The almuerzo, or mid-day breakfast, is fully as sub- 
stantial a meal as the six or seven o'clock dinner. 
Both begin with soup and fish, the best of the latter 
being the corbina. At the breakfast eggs invariably 
are served, and usually rice. The latter is prepared 
as a vegetable with rare art, retaining the form and 
whiteness of the grain. Meat courses, beginning with 


the fowl, follow in procession, and a salad always may 
be had. 

The Spaniard and his descendants in South America 
approach roast pig as reverently as Charles Lamb 
did. For them it is a poem. A very good dish 
transplanted from Spain is called the puchero, and is 
something like a New England boiled dinner, having 
a variety of vegetables cooked with the meats which 
are its foundation. 

In the interior, where reliance has to be had on the 
Indian population, the standard dish is the chupt> 
though it bears different names. This is a rich soup, 
highly seasoned by dried red peppers, with plenty 
of vegetables, and with a meat stock as the basis. 
Sometimes the meat is the vicuna or llama, some- 
times goat, sometimes mutton, and once in a while 
beef. It is wholesome and satisfying. The only 
caution to be observed is not to see its preparation 
by the Indian women. 

Two luxuries among the fruits of the tropics make 
oranges, bananas, and pineapples seem commonplace. 
These are the alligator pear and the cheremoya. The 
Northern appetite cloys at the preserved sweets which 
the tropical palate demands, but it never loses the 
enjoyment of these fruits. The alligator pear (Gua- 
nabanus Per sea) in the West Indies and in Mexico 
goes by the name of aguacate or avocat. In South 
America it is called the palta. It is eaten as a salad, 
and French genius never concocted a delicacy equal 
to this natural appetizer. 

The aguacate looks like a small squash rather than 
a pear. It has a kernel, or hard stone, as big as the 
fist. The flanks are laid open, the stone removed, 

Banana Grove 

Pineapple Garden 


and the fruit is ready to serve in its own dressing. 
Some prefer it with just a pinch of salt. Others add 
a touch of pepper. Many like a little vinegar with 
the salt and pepper, and a few even prefer a regular 
French dressing with oil, though that is apt to spoil 
the natural flavor. Epicures like it with sugar and 
lemon juice. The aguacate is one of the undisguised 
palatal blessings of the tropics and the semi-tropics. 
It should be sought after and insisted on at every 
occasion. The imported fruit loses the poetic savor. 
The most careful packing and tenderest care cannot 
preserve its delicate taste. I tried it once in bringing 
some from Honolulu to San Francisco. They looked 
well, but something was lacking in the taste. A simi- 
lar experience between Jamaica and New York was the 
reward for my efforts. I was convinced after these 
experiments that the aguacate is one of the real luxu- 
ries which it pays to go abroad in order to enjoy. 
Young persons who travel will be interested in know- 
ing that it is said to germinate the tender sentiment. 

The cheremoya is not unlike the pawpaw of the tem- 
perate climates. The fibre is harder and not so juicy. 
But the fruit is very rich, so rich that the palate does 
not crave much. A mouthful lingers like the dream 
of the poet. The cheremoya is called the anona in 
Cuba. Several varieties of it differ from one another 
only in the delicacy and richness of the flavor. 
Cracked ice is the complement of the fruit. They 
should be introduced to each other an hour before 

A delusion which the adventuring North American 
should get rid of is that no decent hotels are found on 
the West Coast and in the interior. Everywhere are 


passable ones and in some of the cities exception- 
ally good ones. In the ordinary coast towns they 
are not much more than stopping-places, yet almost 
invariably an excellent breakfast or dinner can be 
obtained. As to the lodging conveniences the old 
Spanish tradition still obtains that a place to sleep in 
is all that is called for, and clean linen and similar 
comforts should not be demanded by the traveller 
who is moving on. But even in this respect improve- 
ments are being made. 

Most of the hotel-keepers are of foreign nationality, 
— French, Germans, Italians, and Spaniards. It is 
rare to find anything of a higher grade than an inn 
kept by a native. The best hotels are those under 
the control of the Frenchmen, and when a choice is 
to be made they should be given the preference, for 
there is not only good eating but cleanliness and some 
consideration for the conveniences of life. A French- 
man keeps the hotel at La Paz in Bolivia, and it is 
a good one. Another passably fair house of entertain- 
ment in the same place is kept by a Russian. At the 
mining-town of Oruro a North American of German 
descent provides excellent accommodations. In the 
remote town of Tupiza in the fastnesses of the Andes, 
where of all places one would hardly look for a for- 
eigner, I found a Slav hotel-keeper and a decent kind 
of a resting-place. The proprietor was from one 
of the Danubian provinces. In Lima a very well 
appointed hotel is managed by an Italian. In San- 
tiago the best one is under the control of a Frenchman. 

In the interior palatial inns are not to be expected, 
though a young French mining engineer who came 
out telegraphed along the Andes trail which he was 


to follow to have room with bath reserved for him. 
The telegram is still shown. Such inns as exist are 
called tambos. Even in the poorest of these, while 
the lodging is wretched, a good meal usually can 
be had. 

The practice obtains nearly everywhere of charging 
separately for the lodging, but in some of the larger 
cities the hotels now are conducted on the American 
plan. The visitor is apt to be puzzled by the annexes. 
Naturally he assumes that the annexes to a hotel are 
part of it, but usually they are separate and under 
a distinct management. In Valparaiso there are a 
Hotel Colon and a Hotel Colon Annex, a block 
or two apart and altogether different. In Santiago 
are the Hotel Oddo and the Annex to the Oddo, 
and so on. This causes confusion, and the traveller 
should make inquiry in advance so as to know where 
he is going. While the sanitary conveniences in most 
of the hotels are poor, improvements are being made, 
and there is something of an approach to the demands 
of civilization. 

A simple rule as to baggage holds good. Take 
as little as practicable and pack it as conveniently as 
possible. That means a good deal of loose luggage ; 
but since trunks are charged by weight and very few 
of the railroads make any allowance for free baggage, 
it is desirable to have one's belongings arranged so 
that they can be piled up around him. One soon 
becomes accustomed to this and to providing himself 
with an armful of rugs and blankets. 

Railroad fares are about one-third less than in the 
United States. The accommodations are not luxuri- 
ous, but they are fair. Night trips are unknown. 


Chile is the only country on the West Coast which 
provides a through night train with a sleeper. This 
is on the line between Santiago and Talca. 

An addition to the regular expense of travel is that 
for embarkation and disembarkation. It is not 
covered in the steamship ticket, and since, with few 
exceptions, in the different ports the vessels do not 
go to wharves of their own or put their passengers 
ashore in lighters, each makes his choice of the small 
boats and pays the bill. These charges are not high, 
yet in the course of a long voyage they mount up, and 
it always is desirable to make the bargain with the 
boatman in advance. 

For travel in the Andine regions it is necessary to 
provide one's own outfit. For those who have to 
go about much it is not practicable to have their own 
pack and riding animals, though occasionally a mining 
engineer will keep a pair of horses or mules and trans- 
port them from place to place. Usually the mules 
and burros, or donkeys, have to be hired. In every 
case it is advantageous to own the montura, or saddle, 
and other accoutrements, with especial regard to the 
capacity of the saddle-bags. Though in the United 
States the McClellan is the favorite for hard travelling, 
Americans engaged in mining or in exploration work 
in the Andes prefer the Mexican saddle. A mining 
company in southern Peru after various trials dis- 
carded everything except Mexican saddles, and had 
these made especially in San Francisco. In my own 
experience I found them the most comfortable. 

The petacas, or leather trunks, are used by all the 
South Americans. These are small, and a pair of them 
balance nicely on either side of the pack animal. Yet 


during a long mountain journey I managed to trans- 
port an ordinary trunk. The Andean mule is bred in 
northern Argentina. It is not the society pet that 
is its cousin of the United States Army, and it will 
carry a burden of two hundred pounds in the upper 

A supply of canned goods and similar provisions is 
essential, for it is not possible to rely solely on such 
wayfaring entertainment as may be had at the Indian 
huts, even when the trip is short enough to keep 
within the limits of human habitation. Charqui, or 
erked beef, is the mainstay of the stomach for a long 
ourney, but dried mutton sometimes may be had, and 
is less likely to become unpalatable. Chuni y the dried 
and frozen potato which nourishes the Bolivian In- 
dians, has nutritive virtues, but palatability is not one 
of them. 

The chief problem in mountain travelling is fodder 
for the animal rather than food for the man. In the 
valleys and part way up the punas, or table-lands, fresh 
alfalfa may be had. But in the higher sierras this is 
lacking, and it is necessary to carry a stock of barley. 
In some places where barley can be raised it runs to 
straw and does not mature into the grain, so that the 
local supply is not to be depended on. 

A hammock is useful in the forest regions. A tent 
and other camping outfit are sometimes desirable, yet 
where it is possible to keep within the range of popu- 
lation it is better to risk shelter in the Indian huts, the 
traveller carrying his own blankets or sleeping-bag. 
A Western frontiersman or miner has little difficulty 
in outfitting for the Andean regions. 

The quarantine is one of the serious annoyances 



of travel on the West Coast, though the interrup- 
tion which it causes often is exaggerated. At times 
one may have to postpone a landing or a departure 
because of the restriction, and in that case there is 
nothing to be done but go on to the next open port 
and wait in patience. The regulations of the different 
governments are similar, though they are not always 
enforced with discretion and common-sense. Yet they 
are no more severe than the regulations of New 
Orleans or other Southern ports of the United States. 
Their purpose of self-protection is justifiable. The 
objection is that the application of the measures 
taken is unreasonable. The steamship companies in- 
sist on the exaction of charging the passengers an 
extra sum for the time in which the vessel is held in 

So many sorts of money are in circulation that it is 
impossible for the traveller not to lose through 
exchange. The United States dollar is known well 
enough, but it has not yet made its way down the coast 
sufficiently to insure being taken for its full worth. 
Letters of credit and bank drafts would better be in 
English money, for the banks and exchange houses 
insist on counting the $5 gold piece as equal only to 
the pound sterling, or $4.85. It will take some years 
for the full result of the Panama money system to be 
felt on the West Coast, though ultimately that will 
help to extend the use of United States currency. 

A calculation is made every quarter by the United 
States Mint of the value of the coins representing the 
monetary units of the various Latin- American coun- 
tries. This serves as an index of values, though in 
actual transactions it cannot always be insisted upon. 


The universal coin on the West Coast is the Peruvian 
sol, equal to 48J cents gold. It is the size of the 
American silver dollar. Since Peru has the gold 
standard and coins a Peruvian pound called the inca, 
exactly the weight and fineness of the English pound 
sterling, there is no fluctuation. Ten soles make a 
pound. For local purposes along the coast the 
Peruvian sol is therefore the best medium of exchange. 

I have left for separate consideration the subject 
of the diseases incident to West Coast travel and 
residence. Their mention frightens. Why, I do not 

Pneumonia and typhoid in the temperate climates 
cause greater ravages than tropical diseases in their 
field, nor is malaria in its manifold manifestations 
limited to a given area. Fever and ague in the United 
States, calentura in the West Indies, terciana in the 
forest regions of the Andes, — it all is essentially 
the breakbone fever. Quinine and calomel remain the 
tonic preventives. Tropical dysentery is to be guarded 
against by common-sense in diet. The social vices 
bring their inexorable penalty more swiftly than in the 
North, but their remedy is the moral prophylactic. 
Yellow fever, since the demonstration of the mosquito 
as the active agent in its propagation, is losing its ter- 
rors, but its avoidance comes under the sphere of epi- 
demic quarantines rather than of individual measures. 
The exceptional conditions which will prevail on the 
Isthmus during the Canal construction and the ex- 
ceptional means adopted to combat disease are not to 
be taken as representative of the West Coast. Yet 
the benefit of this experience will be great. But 
whether along the coast, on the plateaus of the Andes, 


or in the tropical valleys, one general rule is more 
valuable than a medicine chest. It is that of a healthy, 
fearless mind which does not magnify ordinary ail- 
ments and which keeps its poise in the shadow of 
more serious illness. 



Canal Entrance — Colon in Architectural Transformation — Un- 
changing Climate — Historic Waterway Routes — Columbus 
and the Early Explorers — Darien and San Bias — East and 
West Directions — Life along the Railway — Chagres River 
and Culebra Cut — Three Panamas — Pacific Mouth of the 
Canal — Functions of the Republic — Natural Resources — 
Agriculture and Timber — Road-building — United States 
Authority on the Zone — Labor and Laborers — Misleading 
Comparisons with Cuba — - The First Tear's Experience. 

WHEN the Caribbean is restive, restless is the 
voyager. After tossing in misery one April 
night I peered through the port-hole of the steamer's 
cabin at what seemed a cluster of swinging lanterns 
dipping into the sea. They were the lights of Colon. 
The vessel was riding at anchor to await the morn- 
ing hour when the approach to the quays could be 

Daybreak unfolded through the mist, disclosing 
green foliage ridges and broken forest-clad hills slop- 
ing to a shallow bowl. This circular basin is the 
island of Manzanillo. The town lies as in the bot- 
tom of a saucer. Colon is not a harbor in the usual 
sense, for the curving Bay of Limon which it fringes is 
an open roadstead. The improvements by the United 
States will make it a commercial haven. 

For all the years to come the blue horizon will be 
swept by the eager eye of the traveller for the Canal 


entrance. Seen from the ship's deck, it is like the 
smooth surface of a sluggish river, broad and open. 
The artistic instinct of the French engineers found 
expression even in the prosaic work of earth excava- 
tion. They planted a village in the midst of cocoanut 
groves, and the palm-thatched cottages charm the eye. 
The bronze group of Columbus and the Indian, Em- 
press Eugenie's gift, allegorical of the enlightenment of 
the New World, may be seen through glasses, while the 
showy residence built for De Lesseps is discerned. 

Little is noted of the town till the wharves are ap- 
proached. There is a group of warehouses, a glimpse 
of railroad yards, a conglomeration of frame houses 
with peaked roofs and outside balconies and stairways, 
and then swamps, marshes, and hills beyond. The 
great transatlantic liners stretched along the docks are 
far more imposing than the port town itself. 

Ashore, the frame structures give an impression of 
all that is temporary and unsubstantial. Some have 
been streaked with deep indigo blue, but the sun and 
the salt air have worn the pigment to a faded azure. 
Colon has little that is typically and traditionally Span- 
ish, because when the insurgents burned it in 1885 
they left only a few brick and mortar buildings. The 
town which then sprang up was built with economy 
in view, though pine lumber was not very cheap. 
The newer city which gradually will replace the 
aggregation of shanties will be more substantial 
and more like a permanent seaport. The Gothic 
brownstone church in which the Jamaica negroes and 
the whites who profess . the Anglican form of faith 
worship, is the one edifice in Colon that in the trans- 
formation should be allowed to remain. 





The cocoanut grove in front of the hotel, facing 
the Caribbean, is a pretty bit of landscape, and the 
statue erected to William H. Aspinwall, John L. 
Stephens, and Henry Chauncey, associates in the build- 
ing of the Panama Railroad, if not a monument of 
taste, at least serves a praiseworthy purpose as a tribute 
to indomitable American enterprise. Ornate homes, 
tropical in the extreme, line the sea-front, but the 
residence district is a very limited one and will remain 
so until the swamp is filled in and the marshes cleared 
away. Colon may be regarded as in the process of 
hygienic architectural transition, and its lack of attrac- 
tiveness need not be deplored. The work of recon- 
struction would be immensely facilitated if another 
fire could sweep across the marshes and leave noth- 
ing but the brownstone church, the hotel, and the 

Colon is the most typically cosmopolitan place 
upon the Isthmus, and will continue so until the 
worlds commerce begins to flow through the water- 
way. Then the city of Panama will share with it in 
this respect. But Panama does not have in so full a 
degree the European mixture as Colon, for the crews 
of the transatlantic vessels seldom get across to the 
Pacific port. In all the mingling of tongues in Colon 

— German, Spanish, Italian, French, Chinese, dialect 
Indian, Greek, Swedish, and many varieties of English 

— nothing is so mellow and so distressing in whining 
intonation as the broad cockney accent of the Jamaica 

The work accomplished by the Panama Railroad 
Company, hygienically and otherwise, serves as a basis 
for the physical regeneration of Colon which must 


accompany the Canal construction. Its provisions 
for its employees, its hospitals, and its general sani- 
tary regulations were so well conceived and carried out 
that their value as an example and a precedent is very 
great. The engineering problem is comparatively 
simple. It is to raise the level of the island of Man- 
zanillo, and then to provide sanitary conveniences and 
enforce hygienic principles both for the community 
and for the individual. The question of water supply 
is one of gathering the plentiful showers of heaven 
in cisterns and distilling them. A system of water- 
works which will bring pure water from the springs 
of the Cordillera is not impracticable. 

Colon is hot and humid. Its climate cannot be 
modified by artificial devices. During the dry season, 
which is from April to July, the mean temperature is 
nearly 90 Fahrenheit in the shade, while in the sun it 
is no°. The humidity is about 77 per cent. In the 
rainy season the mean temperature is 85 , and the 
humidity varies from 86 per cent to complete satura- 
tion. The annual rainfall is seldom less than 125 
inches. A man six feet in stature standing on the 
shoulders of another man of equal height, would just 
about be able to keep his shoulders above water if the 
two were placed in a reservoir which would catch and 
hold the entire rainfall of the year. But in spite of 
heat and humidity and precipitated moisture, existence 
can be made passably comfortable. 

As the traveller takes his way across the Isthmus, 
he may wish also to view in retrospect the waterways 
that have been conceived in the brains of men who 
were ahead of their times, and the paths of trade and 
travel that have been followed ; for now, in the 


presence of actual construction along a determined 
course, these pioneer routes quickly fade into oblivion. 

The projects have been many. They were to un- 
lock the key of the universe and to throw open a gate- 
way to the Pacific. Columbus explored the Mosquito 
coast in search of the passage to the Indies, and thought 
he had found another Ganges, though the strait which 
he sought was obstinate in hiding itself. He planned 
colonies at the Gulf of Uraba, or Darien. Balboa and 
his companions, among whom was Pizarro, from near 
the same place, 200 miles east of the Chagres, hewed 
their way through tropical forest jungle and over 
mountains till they reached the summit of Piuri, from 
which they saw the Pacific and named the ocean inlet 
San Miguel Bay in honor of St. Michael. A few 
years later Balboa had cc the little boats " carried over 
this path from the Atlantic to the Pacific. Long 
afterward, more than a century and a half, Sir John 
Morgan led his loyal buccaneers in Balboa's foot- 
prints to the bloody sacking of the opulent city of 

But the early Spaniards found a shorter route for 
their traffic. At different periods the Chagres was 
followed from its mouth till within twenty miles of 
Panama, and then the jungle was pierced by paths. 
Yet this was not the camino real> or king's highway. 
That royal road was a cobble-paved mule trail from 
Portobello, twenty miles east of what is now Colon, 
to Santes on the upper Chagres, and thence to Panama. 
This is the route over which the traffic passed for 
two centuries. The land trails could be tested. The 
canal courses could only be dreamed or projected in 
the imagination. 


Of the three interoceanic routes which have become 
historic, the early explorers, Spanish and Portuguese, 
thought mostof the Darien or Caledonian cross-cut 
channel. It was to start north of the Gulf of Darien, 
near the bay which afterward became known as Cale- 
donian Bay, and follow a general direction southwest 
to the Pacific. Senor Don Angel Savedro, one of the 
first petitioners to Charles V for an interoceanic water- 
way, had this general direction in his mind. This was 
the route advocated by the Scotch banker, William 
Patterson, in his broad scheme for Great Britain to 
save control of the Antilles, by seizing Havana, ac- 
quiring the Isthmus, and constructing an isthmian 
canal in order to carry the blessings of commerce and 
civilization to the Sandwich Islands. 

During the nineteenth century the Darien general 
route was no less earnestly advocated than in the six- 
teenth and seventeenth centuries, and the mythical 
low level had many believers. Frederick M. Kelley, 
the New York banker, who gave fortune and a life's 
ambition to the project of an interoceanic waterway, 
also based his hopes on the Darien route. It required 
the explorations of Commander Selfridge and subse- 
quent American expeditions, as well as the investiga- 
tions of Reclus and Wyse for the French company, to 
dissipate the unfounded hopes regarding Darien. 

The San Bias route, being the*shortest, should have 
had more advocates, for it is only thirty-one miles 
across from ocean to ocean, but the solid mountain 
wall of the Cordillera discouraged most of the early 
explorers. Its merits and demerits were made familiar 
to the public through the discussions in Congress. 

It was of the upper Chagres route that the intrepid 


Frenchman, Champlain, whose voyage to the West 
Indies and the Isthmus in 1602 seems to be histori- 
cally established, wrote : " At Panama is a little river 
which rises in the mountains and descends to Porte 
Bello, which river is four leagues from Panama . . . 
and being embarked on the said river there are but 
eighteen leagues to Porte Bello. One may judge that if 
the four leagues of land which there are from Panama 
to this river were cut through, one might pass from the 
South Sea to the ocean on the other side and thus 
shorten the route by more than 1,500 leagues; and 
from Panama to the Straits of Magellan would be an 
island, and from Panama to the Newfoundlands would 
be another island, so that the whole of America would 
be in two islands." 

The Raspadura channel, by which the Jesuit Fa- 
thers were said to have made the passage from ocean 
to ocean in canoes with a very short portage, lacks 
historical verification. 

The Chagres route was included in the broad vision 
of the future which Lopez de Guevara had in the 
middle of the sixteenth century. The realization of 
his dreams may be for the twenty-fifth century. He 
proposed the union of the two oceans by three canals 
opening in three points, - — the Chagres in Panama, 
Nicaragua, and Tehuantepec. 

Before following the jungle-screened railway line or 
tracing the course of the Canal with its luxurious 
border of tropical vegetation, it is desirable to clear 
away geographical confusion. The Isthmus of Panama 
extends almost directly east and west. It is the con- 
tour of the two continents as formed by a neck not 
simply awry but completely twisted, — in popular 


language, a gooseneck. The entire West Coast of 
South America, except a slight bulge near the Equator, 
lies east of the longitude of Cleveland, Ohio. Panama 
City is about on the north and south line with Pitts- 
burg. It is southeast of Colon, and the general direc- 
tion of the Canal from the Atlantic entrance, therefore, 
will be southeast. 

The route selected by the French engineers, and 
which with some variation will be continued by the 
United States, does not need detailed description. 
The course of the Canal can be observed in the rail- 
road journey to Gatun, where the first view is had of 
the defiant Chagres fed by its twenty-one tributaries. 
I have seen the Chagres a tame, sleeping brook, losing 
itself in the tropical jungle or the narrow gorges, and 
again have looked on it when it was a wild, resistless 
torrent. The engineering problems never can be fully 
appreciated until one has seen the Chagres sweeping 
on in its conquering career. 

Native customs and the mixed life of Canal con- 
struction are seen at the stations along the railway. 
Every village has its collection of parrots and mon- 
keys. The sights differ from the scenes in other 
parts of the Isthmus, because of this intermingling of 
foreigners, largely Chinese and Jamaican. But the in- 
habitants are so markedly of the local type that they 
may be easily distinguished from the foreign mixture. 
The aboriginal Indian race, of which there are various 
branches, forms a third of the inhabitants. The Pana- 
menan is about three-fourths Indian blood and one- 
fourth Spanish, although farther away from the Canal 
Zone a very strong negro element exists, due to the 
introduction of African slavery by the early Spaniards. 

The De Lesseps House, Colon 

'* % A 

Caribbean Cocoa Palms 


The natives, from their familiarity with the jungles and 
their ability to withstand the hardships of the climate 
and the exposure, are useful principally to the explor- 
ing parties and the pioneering expeditions. They are 
too indolent for the actual work of excavation. 

The Culebra Cut is not seen to full advantage from 
the railway, yet a fair idea may be obtained of the 
task involved in cutting the spine of the Cordillera 
or the Continental Divide at this the lowest depres- 
sion, 272 feet. The excavation and removal of the 
material from this section is said to be the controlling 
factor in the Canal construction. The valley with the 
city of Panama huddled at the foot of Mt. Ancon, 
and Taboga Isle in the bay, are seen to advantage 
from Culebra. 

There are three Panamas. One is primitive Pan- 
ama, in jungle-covered ruins, a few miles from the 
present port. This was the city whose opulence was 
the envy of the world until its treasures awakened 
the greed of Morgan and his fellow freebooters and 
became their spoil. Then the new town was built 
and fortified. It is gloriously mediaeval with all its 
Spanish and Moorish buildings, its cluster of emerald 
rocks in the bay, its high tides and its mixed nation- 
alities, with little Italy and modernized China side by 
side. But the present Panama attracts only at a dis- 
tance, and will be attractive only at a distance until 
modern sanitation can be installed and some of its pic- 
turesqueness be destroyed in the interests of public 
and private hygiene. 

Rivalry exists between Panama and Colon over 
their relative climatic attractions. Panama is much 
drier than the Caribbean seaport, the annual rainfall 


usually being not more than 70 inches and the hu- 
midity of the atmosphere not so great. But 90 
Fahrenheit in the shade is the average mean tem- 
perature, and the humidity is penetrating enough to 
serve all practical purposes of discomfort. 

The new Panama is at La Boca, the Pacific mouth 
of the Canal. This is the railway terminus, and it 
is there the United States authorities created the port 
of Ancon and then abandoned the plan of collecting 
customs duties in competition with the Isthmian Re- 
public. Wharves are located there, and for shipping 
the place offers some advantages over the port of 
Panama. The present Panama with its population 
of 25,000 is congested. Its old buildings are over- 
crowded. They are solid, substantial, and will last 
for centuries yet ; but the natural movement of popu- 
lation, especially in view of the enormous rents de- 
manded in Panama, will be to seek the new city 
which will grow up as a frame town with elements 
of stability. Much business is certain to drift to the 
Canal mouth, some of it in American hands. The 
mercantile community in the days when Colombia 
controlled the Isthmus was anything but Colombian. 
It was West Indian, Italian, Chinese, German, French, 
American, and English. It is the same to-day and 
will be the same to-morrow. 

The United States is the paramount authority on 
the Isthmus, the control of the Canal Zone making 
it such, and its duty to itself and its responsibility to 
the world could be discharged in no other way. Yet 
there is also the government of the Republic of Pan- 
ama, — a protected commonwealth. All that needs 
to be understood is Article I of the Hay-Varilla 


Treaty. This says that the United States guarantees 
and will maintain the independence of the Republic 
of Panama. 

In its political relations the Spanish term may be 
adopted, and the Republic may be said to be " in 
function " within the sphere of the United States. I 
omit particulars of the governmental system in order 
to examine the industrial resources and prospects. 
Details of administration are unnecessary, because the 
authority exercised by the American officials in the 
Canal Zone, and the supervising power over sanita- 
tion in Colon and Panama, take the subject out of its 
local limitations. The liberality shown by President 
Roosevelt's administration in adjusting the jurisdiction 
of the United States on the broad lines laid down 
by Secretary Taft, left the Panama government free to 
work out its commercial and industrial growth through 
its own measures and to the full extent of its own 
abilities as a commonwealth. A full account of fiscal 
policy may be omitted, with the general statement that 
international traffic in transit as taxed by port dues is 
not subjected to heavy burdens, while the imposts on 
domestic trade are not severe. While a tariff in the 
protective sense may not be said to exist, the system 
of ad valorem valuations secures a customs revenue 
which places all merchandise under tribute. Internal 
taxation has many forms, modelled, as it is, after the 
Spanish system. In addition the income from the 
$10,000,000 received from the United States assures 
that the government will continue to be a "going" 
concern, in practical operation as well as in legal 

For the student of political institutions the interest 


is in the moulding of the inheritance of Spanish laws 
and Spanish administrative system to American models 
and the influence of an environment so pronounced as 
the American control of the Canal Zone. The evo- 
lution of the civic spirit, instead of being under the 
shadow of an unfriendly Power, is in the sunshine of 
a big genial Republic. 

In its soil of decayed vegetation the Isthmus, with 
an area equal to the State of Indiana, has natural wealth 
enough for the subsistence of a continent. But it is 
tropical natural wealth, much of which exists under 
conditions unfavorable for development. Timber ex- 
ploitation may one day open the longitudinal path 
eastward from the Canal Zone through the health- 
destroying jungles to the Gulf of Darien. Mahogany 
and others of the precious hardwoods offer the temp- 
tation. But the trail will be blazed slowly, a score or 
so of miles each decade. The mineral deposits also 
lie to the east. They will aid in the conquering of 
this hitherto unconquered region, yet gradually. 

The territory which will be developed most rapidly 
is that lying principally west of the Canal Zone and 
extending to the limits of Costa Rica. Tropical agri- 
culture in the hands of natives of the temperate 
countries is entirely practicable in this region, much 
of which has a climate markedly superior to the belt 
lying between Colon and Panama in the valleys of the 
Chagres and the Grand Rivers. The fruit industry, 
and in particular banana culture, has made rapid 
strides, but its possibilities are only in their beginning. 
Coffee cultivation was becoming a profitable business 
until the political disturbances ruined it. The revival 
may be expected within the five years necessary to 


bring the trees to the point of commercial production. 
Ivory nuts, rubber, and the infinite variety of minor 
tropical products will be stimulated by the market 
that will be opened. In the extreme west along the 
Pacific slope, where grazing has been enough of an 
agricultural industry to create the flourishing town of 
David, an enduring basis will be given to the live-stock 

But none of this agricultural growth can precede 
the building of roads. These are totally lacking in 
the interior. The Panama government made sensible 
provision out of its first revenues for this form of 
internal improvement, and the policy may be looked 
upon as a continuous one. The railroad line of 
development will be from Bocas del Toro on the 
Atlantic slope to David on the Pacific coast. Bocas 
del Toro will reach the Canal Zone by a railway 
through the banana-producing lands, and David in 
time may be connected with Panama. 

In the general sense the prosperity of the Isthmus 
for many years depends more on the excavation work 
and on the international commerce than on its inter- 
nal resources. It is this which will swell the trade of 
$2,000,000 or $2,500,000 annually to greater figures. 
Yet the waterway is the sure harbinger of the exploita- 
tion of the productive founts. The Canal community 
and the Canal construction are the potent economic 

When all is said, the Zone is the thing. The laws 
administered may not in their entirety be American 
laws, but they are such in spirit. Actually, the Canal 
Zone is a semi-military camp. It must continue such 
for purposes of sanitation and law and order during the 



entire period of Canal construction. What follows is 
the establishment of a colony within the Republic of 
Panama, yet not of it. This colony, which includes 
laborers, civilian officials, occasional detachments of 
marines, and a police force, is not apt at any time 
greatly to exceed 25,000 persons. The early esti- 
mates of the very large number of laborers who 
would be required were reduced when the engineers 
began to make closer study of the degree to which 
improved machinery could be used in the excavation 
and other work. It will be a conglomerate mass, — 
Jamaican and other West Indian negroes, Chinese coo- 
lies, Mexican and Central American peons, possibly a 
few American blacks, Italian railway workers, and sim- 
ilar elements. In spite of all scepticism and detraction, 
the Jamaica and Barbadoes negroes will do the bulk of 
the work on the Canal. They did the most of what 
was accomplished by the French company. They 
built the railroads along the unhealthy coast of Costa 
Rica. They have shown the greatest adaptability to 
the climate and the best capacity for hard labor. The 
Panama Canal will be the monumental contribution of 
the despised black race to civilization. 

Aside from determining the engineering conditions 
of the Canal, which I have no purpose of discussing in 
this volume, the most important functions of the United 
States on the Isthmus are in regulating sanitation 
and hygiene. This regulation could not be restricted 
merely to the inhabitants of the Canal Zone, for to 
guard them against epidemics Colon and Panama had 
to be protected. 

I never shared the enthusiasm over the rose-colored 
comparisons of the region lying between Colon and 

Panama Natives from the Swamp Country 

Panama Natives from the Mountains 


Panama with Havana and Cuba. Measures of hy- 
giene, public sanitation, and even individual cleanliness 
will be secured on the Canal Zone and in the seaport 
cities. This will be valuable in decreasing the danger 
from yellow fever, bubonic plague, or other epidemics. 
And it also may be assumed that the strict supervision 
given by the medical officers will in a measure serve as 
a preventive against dysentery and enteric diseases, 
which are common to the tropics and especially so to 
the moist lands. But the Canal Zone topographically 
is vastly different from the island of Cuba. The At- 
lantic Ocean sweeps across Cuba. Every day of the 
year a healthful breeze is felt in the great central belt 
of that island. This not only purifies the northern 
coast, but it also invigorates the interior region, and its 
effect is felt even on the south coast. But in the Canal 
belt are the dead calms of the Pacific on one side and 
the limited area of the Caribbean winds on the other 
side. The Atlantic breezes are lost in the marshes 
before they reach the ridge of the Cordillera, while 
the zephyr which sometimes springs up in the Bay 
of Panama rarely extends as far as the Culebra Cut. 
When the Canal is completed, it will not serve as a 
tube through which the breezes of one ocean will 
whistle to the other ocean. 

I write these opinions without the purpose of open- 
ing a controversy with enthusiastic scientists, medical 
officers, or meteorologists, but merely as a statement 
of climatic conditions which cannot be changed by the 
agency of man. There is the peculiar configuration 
of the Cordillera that causes the moist blankets to 
hang over the Isthmus and precipitates the enormous 
quantities of rain. Cuba has its wet season during 


certain months, but these rains are normal phenomena 
and are not supercharged with disease. 

Miasma must result from the excavation of the de- 
cayed vegetation of a thousand years which consti- 
tutes the waterway line with the exception of the 
Culebra Cut, and yet the central belt of the Isthmus 
has enough of pernicious malaria even with the 
earth undisturbed. Experiences at Havana and else- 
where will be utilized, and the mosquito, if not extermi- 
nated, will have its harmfulness curbed. Whatever can 
be accomplished by artificial means to combat disease- 
breeding Nature will be accomplished, and no doubt 
need be felt regarding the efficiency of the sanitary 
corps as organized under the Canal Commission. But 
when all is not simply said but done, it comes to this : 
the inherent unhealthy conditions of the Canal Zone 
will be reduced to a minimum. The climate will not 
be conquered. What may happen will be to reconcile 
it to the presence of a larger number of inhabitants 
than the region heretofore has had. 

For those who will dwell and work on the Isthmus 
the suggestions of the sanitary corps are so complete 
that I can add nothing except to advise to follow these 
instructions and to take a vacation either to the health- 
ful mountains of Costa Rica or down the Pacific coast 
or back home as often as possible. The population 
which will be living in the Canal Zone for the next 
twenty years in relation to health is to be taken in the 
mass, and the experiences of a few individuals who 
have been able to regulate their own occupations with 
a special view to conserving their strength are not to 
be accepted as applying to thousands of other individ- 
uals. Nor is the result of a few months' life on the 


Isthmus in its effect on the human energies to be ac- 
cepted as the index of what may be expected after 
several years, during which the mental and the phys- 
ical faculties are concentrated on one task. 

The lessons of the first year's experience are easily 
learned. In the beginning was the buoyant, hopeful 
American temperament which goes straight forward to 
the task and, once determined that it shall be done, 
takes no note of obstacles. The Canal never would 
be built if the spirit of pessimism obtained at the out- 
set. Optimism is always better in a great national 
undertaking. A large number of cheerful and confi- 
dent Americans flocked to the Isthmus to fill positions 
in the engineering, the clerical, the sanitary depart- 
ments and on the railroad. That there were confusion 
and cross-purposes in administration and complaint 
of red tape was not important. Actually the Wash- 
ington authorities cut far more of the red tape than 
ordinarily can be done safely in government enter- 
prises. But within a few months loud complaints 
were heard about low wages, the high cost of living, 
the long hours of labor, and the lack of recreation and 
amusement. Then the discouraged employees began 
to come home. They were of two classes. Many of 
the early home-comers were the adventurous fellows 
who had gone to Panama wanting a new experience 
and having had it more rapidly than they had antici- 
pated, returned to spread the discontent. There was 
the other, and perhaps the more numerous, class who 
had gone in good faith, expecting to find conditions as 
to health and personal comfort similar to the United 
States, and intending to stay. It is likely, too, that 
both classes, working as they were for the government, 


expected easier conditions than would obtain in private 

The unvarying tendency of the returning employees 
was to discredit the glowing official and semi-official 
reports which had been made, and the promises held 
out of immunity from even the common ailments, 
including lassitude and homesickness. Then came 
the yellow fever epidemic of the Summer of 1905 
and the long period during which the health authori- 
ties were baffled in locating the focus of infection. 
There was also the disagreeable evidence that per- 
nicious malaria had had time to work havoc in many 
strong constitutions. The picture of the panic- 
stricken groups struggling to get away from Colon 
with every vessel may have been a little overdrawn, 
but that the feeling throughout the Isthmus was one 
of illy suppressed and contagious terror was undeni- 
able. Yet to those experienced in tropical diseases 
the mortality was not an excessive one, nor were the 
general health conditions bad, allowance being made 
for surroundings. The permanent hospital records 
and vital statistics unquestionably will show that won- 
ders were really worked under a scientific and system- 
atic sanitation and provisions for conserving the health 
of employees. But the medical officials in their spirit 
of hopefulness had predicted freedom from the inevi- 
table diseases of the Isthmus of Panama, and the failure 
of their prophecies caused the disappointing results to 
be exaggerated. 

Generally, during the first year the United States 
suffered from too much expert opinion and advice 
regarding engineering and administrative work of the 
Canal and too little practical application to the task in 

Ruins at Panama 


hand. This was not true of the sanitary authorities, 
who worked harmoniously and effectively. If only 
they had been more conservative in their original 
statements, it would have been better for their reputa- 
tions as prophets of health. It always is to be re- 
membered that ditch-digging in the most humid and 
rainiest section of the tropics cannot be made an en- 
tirely healthful occupation, and as fast as the subsoil 
is turned up by the steam-shovel the earth's resent- 
ment at being disturbed will make itself felt. The 
procurement of the permanent class of employees and 
laborers with the physical stamina and the moral fibre 
which the work of Canal construction requires, is nec- 
essarily an evolution and not the creation of a single 
year. But that class will be evolved, and the under- 
taking will go forward. 

My own point of view is twofold. The Canal 
insures the industrial development of the Isthmus of 
Panama along the lines of tropical agriculture. It 
creates an international commerce and it adds to the 
domestic trade. It will secure an increased perma- 
nent population to replace the army of construction 
when the work of excavation shall be completed. 
This is the certainty in relation to the resources and 
the people. It will be good for Panama. But there 
is a wider good which is not local. For ten or twenty 
years the Canal will be a training-school in which to 
test and strengthen the constructive energy of the 
American character. Nowhere will the initiative 
faculty make greater demands on the individual. 
For those " who die victorious " the tribute of Time 
will be the completed Canal. For those who live the 
task will be from year to year out of their abundant 


experience to help on the industrial development of 
adjacent lands, among them the West Coast coun- 
tries. And that is the civilization which will sweep 
from the Atlantic through the Canal and down the 



Tranquil Ship Life — Dissolving View of Panama Bay — The 
Comforting Antarctic Current — Seeking Cotopaxi and Chim- 
borazo — Up the Guayas River — Activity in Guayaquil 
Harbor — Old and New Town — Shipping via The Isthmus 
and Cape Horn — Chocolate and Rubber Exports — Railway 
toward ®)uito — A Charming Capital — Cuencd's Industries 
— Cereals in the Inter-Andine Region — Forest District — 
Minerals in the South — Population — Galapagos Islands — 
Political Equilibrium — National Finances. 

SHIP life along coast from Panama south is dream- 
ful, placid, nerve-soothing. 

"This South Sea," wrote the Augustine Friar 
Calancha, in his chronicle of the early Spanish 
voyagers, "is called the Pacific because, in compari- 
son with the Atlantic and the Mediterranean, its 
storms are less violent and fewer and its calm is 
more tranquil. It is also called the sea of drunkards 
because a drunken man might navigate in it. Both 
oceans and ships are ruled over by five beautiful stars 
in the form of a cross, in a happy prognostic of holy 
domination over sea and land — at the sight of which 
the devil even when most enraged retreats and leaves 
all in tranquillity." This is surely a happy description 
of the quiet ocean and a devout poet's image of the 
Southern Cross. 

The steamers are commodious floating Summer 
homes. The smooth waters of the Pacific make it 


possible to have a type of vessel that would be im- 
practicable for transatlantic voyages. Deck cabins, 
a dining-saloon on the upper deck, and ample room are 
properties of them all. Some of the steamers are twin 
screw, though such enterprise hardly was demanded 
by the traffic and this type is not so comfortable as 
the single screw. From Panama to Valparaiso, 3,100 
miles by the stops, there is rarely enough of a ripple 
to send the most sensitive traveller below with symp- 
toms of sea-sickness. 

The voyage is a marine trip along a great winding 
Continental street, with stops at many corners and turns 
up many lanes. Up and down the coast means put- 
ting into innumerable wayports. This makes them 
more or less acquainted with one another, and one 
coast community feels an interest in what is hap- 
pening in a neighbor port a thousand miles away. 
The vessels bring the gossip, — usually of trade, of 
the value of the last cargo, of quarantine, of troubles 
with the native longshoremen, of disputes with the 
minor officials, and of political events or the latest 
revolution. The through freight is not yet sufficient 
for the big steamers to omit the minor landings and 
make quick time, which could be done if Guayaquil, 
Callao, and Valparaiso were the only ports touched. 
This should be a matter of eight or ten days from 
Panama to Valparaiso, whereas now it takes from 
twenty-one to twenty-three days. The time will be 
shorter when the through traffic developed by the 
Panama Canal has had a chance to grow. 

As the steamer threads its way out into the ocean 
through Panama Bay, the vista is of cone-shaped, vivid 
green-clad volcanic mountains rising sheer out of the 


water. On a disappearing view they look like gopher 
mounds on the prairies. At sunset the sky is of 
indigo-blue and the waters are a maroon expanse, 
but the next night the great copper disk in the west 
burnishes the liquid plain, which seethes at its embrace. 

For two days the voyage is apt to be disagreeably 
hot, though the air rarely becomes so stifling that 
the deck cabins have to be abandoned. The weather 
is decently comfortable in the daytime. The nights 
may be choking, but this does not last long. The 
third day the equatorial line is crossed, not very far 
out at sea yet out of sight of land. The Humboldt, 
or Antarctic, current is met as it sweeps up from Cape 
Horn, and its refreshing coolness is enjoyed for the 
remainder of the voyage. The only unpleasant fea- 
ture is that 'during the season from April to August 
the fogs which hang over the mainland charge the 
atmosphere with too much moisture, and there is no 
relief by their precipitation into rain ; yet the discom- 
fort from this cause is not serious. 

Only the small coasting-vessels put into the minor 
Colombian and Ecuadorian ports. On the Pacific side 
Colombia has but one shipping-point of consequence 
— Buenaventura, where the bay bends in a deep inlet. 
It is the gateway to the immensely rich country of 
the Cauca and of the overland route by Cali and the 
mountain passes through the Cordilleras to Bogota. 

" It is a strange thing," says my Lord Francis 
Bacon, " that in sea voyages where there is nothing 
to be seen but sky and sea, men should make diaries/' 
But down the West Coast, after crossing the equatorial 
line, much more than sky and sea is to be seen and 
the diary-maker need not be furtive in his occupation. 


On the larger steamers one is always straining the eyes 
for Ecuador's famous volcanoes, Cotopaxi and Chim- 
borazo. They are not often visible from the sea, 
though Cotopaxi is sometimes to be discerned. One 
evening I thought I caught a glimpse of one of these 
giant summits. It was towards sunset. Off shore 
was a seeming range of peaked clouds, then through 
a pink mist a sloping green and brown profile dis- 
closed itself; after that bolder conical elevations, a 
dim fringe of them, and finally an unmistakable crown. 
cc It is Monte Cristo," the ship's mate told me. " We 
are in the Bay of Caracas." The chalk-like surface 
was of sheer cliffs sliced as by a knife and with a 
fleece spreading alongside half-way up to the summit. 
" Snow ? " " Oh, no ; only the surf." 

We are not more than ten miles off shore, but 
Monte Cristo dominates as though it were one of the 
colossal volcanoes. The vapors close in, the ribbons 
of gold in the western sky unroll themselves and are 
lost. It is night, and our last chance of seeing Coto- 
paxi is gone. 

The voyage up the Gulf of Guayaquil and the 
Guayas River gives a vista of conical and pinnacled 
hills of living green, sparkling in their verdure like 
raindrops on the leaves when the sun comes out after a 
thunder shower. The gulf narrows, and the point is 
rounded at the island of Puna, which is the Ecuador- 
ian customs and quarantine port. There are bathing- 
houses and pretty Summer or Winter homes, — we 
do not know which, for we realize that under the 
Equator there are no seasons. Beyond Puna the river 
is hardly more than half a mile across from one low 
bank to the opposite low bank. These are bordered 

The Waterfront at Guayaquil 

The Wharf at Duran 


with algaroba trees and cocoanut palms. There are 
open pastures and some neat houses, with ridges of 
mountains in the background, brown and green. The 
borders of the river are pleasant, but the miasma seems 
to hang over the land like a steaming blanket, and one 
gets the impression of malaria, — which impression is 
a correct one. 

Lower Guayaquil is first seen, then the sloping part 
of the city proper. The big rectangular building in 
the saddle of the hills, the most prominent of all the 
structures, is the famous hospital, — a comforting re- 
flection for strangers who have heard of Guayaquil's 
yellow fever record and are told grewsome tales of the 
epidemics. Fewer than eight cases in the hospital 
count as a cipher, and ships get a clean bill of health. 
The profile of peaks back of the town apparently is 
not very high, and the valleys open gently between 
them. A closer view of the city from the ship's deck 
shows that it is not such a bad sort of tropical port. 
Church spires and domes are many, and some very 
handsome buildings are discernible. 

The harbor is full of maritime life. Pointed shoe- 
like canoes and sail-boats are constantly shooting 
around, while farther down the river are the balsas^ or 
house rafts, with their tenants, including men and 
women, children, poultry, pigs, and other accessories. 
The timbers of these house rafts are from a native 
wood of the cork variety, said to be unsinkable. 
Apparently the living occupants of the rafts also are 
of cork, tumbling off into the water and bobbing about 
just as easily. I did not hear of any of them, even 
the smallest, being drowned. I noted the old Ameri- 
can river-boat patterns, and could imagine myself on 


the Mississippi or the Ohio, except that this craft is 
even more blunt as to outline and more tub-like than 
anything that ever floated down from Pittsburg or 
St. Paul. 

The crooked old part of the city is attractive in its 
picturesqueness, and is inviting at a distance. The 
newer section is so regular as to be uninteresting. 
The Guayaquil climate is trying to foreigners, 
though many of them manage to acclimate themselves. 
The mean temperature is 8i° Fahrenheit. The ex- 
tremes in the shade are 90° and 65°. During two or 
three days in the harbor it seemed to me that there 
was but one extreme and that the maximum. 

The city, in addition to its commerce, has a number 
of local industries which include sugar-mills, breweries 
and distilleries, tanneries, foundries, saw-mills, and 
shipbuilding and repair shops. Besides the balsas 
small vessels built of the native timber are constructed 
in Guayaquil. 

Guayaquil is a city of 60,000 inhabitants, the most 
populous port south of San Francisco, with the excep- 
tion of Valparaiso. About 300 foreign vessels, with a 
tonnage varying from 360,000 to 375,000, enter and 
clear the port every year. The coasting commerce 
employs a considerable number of small vessels, — 
2,000, whose tonnage aggregates from 22,000 to 23,000. 
The relation of the port to a waterway across the 
Isthmus appears very clearly from the statement of 
the distances, which may be repeated. From Guaya- 
quil to New York around Cape Horn is 11,470 miles, 
and the time required for the steam cargo vessels 
varies from 60 to 74 days. From Guayaquil to Pan- 
ama is 835 miles, and to New York by this route it 


will be 2,864 miles, or to New Orleans 2,263 miles. 
The time now required, allowing for transshipment by 
the railway and the consequent unloading and reload- 
ing of the freight, varies from 14 to 20 days. With 
through water communication and the advantages 
which will justify supplying coal for faster trips, the 
time need not exceed eight or nine days. From 
Guayaquil to Liverpool via Cape Horn is 10,795 
miles; to Havre, 10,577 miles; to Hamburg, 11,203 
miles. The difference in maritime advantage is ex- 
hibited by the subtraction of the distance from Panama 
or Colon to those ports. 

In years when no long-continued quarantine inter- 
rupts the commercial movement, the imports vary 
from #7,000,000 to #7,500,000, and the exports are 
#9,000,000 to #9,300,000. In 1904 the imports were 
#7,670,000, and the exports #11,642,000. Relatively, 
90 per cent of the foreign commerce of Ecuador passes 
through Guayaquil. It is the entrepot for the interior 
region and also for much of the coast. Esmeraldas in 
the north has a little foreign trade, and also Machala 
in the south. But their imports and exports hardly 
affect the volume of commerce that is concentrated 
in Guayaquil. 

One-third of the world's supply of cacao, or choco- 
late, is had from Ecuador, and this is measured by 
shipments through Guayaquil of 450,000 to 550,000 
quintals, or 45,450,000 pounds to 55,550,000 pounds. 
In one year, of a total crop of 499,000 quintals, 456,000 
were exported through this port. In a later year 
the value of the cacao exported was #7,624,000. A 
large section of the cacao-producing region is directly 
tributary to the city. The exportations of vegetable 


ivory — the tagua or ivory nut of commerce — vary 
from 39,000,000 pounds to 44,000,000 pounds annu- 
ally, valued at from $600,000 to $750,000, accord- 
ing to the market price. In one very successful year 
the value was $1,100,000. For the last year given the 
exports of crude rubber reached 1,100,000 pounds, 
valued at $600,000. The United States takes 75 
per cent and upwards of the rubber product. The 
coffee shipments were worth $500,000. There is also 
a considerable export trade in the various kinds of 
straw and felt hats which are manufactured in the 
interior. Hides are also an article of export. 

The statistics of production and of the foreign trade 
are compiled by the Guayaquil Chamber of Commerce, 
a very progressive institution in a country that is 
not excessively enterprising in exhibiting the natural 
resources. From the figures supplied me by the 
Chamber, I found that the United States enjoyed a 
fair proportion of the Ecuador commerce. France 
takes the larger portion of the chocolate and coffee, 
but the United States furnishes Ecuador a market 
to the amount of $2,250,000 to $2,600,000 annually, 
and ships goods in about the same proportion. 
Germany received in one year about $2,150,000; 
Great Britain, $2,000,000. In the imports England 
has the advantage over all others in cottons and 
woollens. The heaviest item in the exports from the 
United States to Ecuador is provisions, which amount 
to $500, 000 yearly. Petroleum, lumber, machinery, 
and hardware also find a market. 

This United States trade and all the foreign com- 
merce of Guayaquil are so essentially a Panama Canal 
traffic that their details do not call for analysis. In the 

Weed-killer Plant, Guayaquil and Quito Railway 

Railway Spraying Cart 


increase of the future the largest proportion belongs 
to the United States. 

The ambitious project of a railway to connect 
Guayaquil with Quito, the capital, was many years 
in assuming form, but the narrow-gauge line is 
creeping to Quito. The railway starts at Duran, 
on the bay across from Guayaquil, and runs eastward 
through a very rich agricultural plateau to Alausi, 
80 miles distant, where it bends to the north. The 
tropical vegetation of foliage and weeds along the road- 
bed is so very luxuriant that the railway company 
has found it necessary to erect a plant midway in the 
hothouse belt for preparing and distributing, by a 
process of spraying, a solution composed of arsenic and 
nitre. By means of vats and steam-pipes the ingre- 
dients are boiled and dissolved into a strong solution, 
which is drawn off into a large tank, similar in con- 
struction to a regular railway water-tank, from which 
the spraying-car is filled. When the rainy season 
opens, the weed-killing plant begins its operations, 
spraying the roadbed at regular intervals. This is a 
very interesting feature of tropical railway operation. 

The road surmounted the greatest engineering dif- 
ficulties when it reached Guamote, 115 miles from 
Guayaquil ; and the mountain section was completed 
so that trains could be hoisted from the coast level 
to the Andine plateau, a sheer vertical distance of 
almost two miles. The railway will cheapen the traffic 
both for imported merchandise and for exports. 

The corporation had an up-and-down financial his- 
tory. The railway construction was begun, or rather 
a local line was continued, by Americans who secured 
the concession from the government of Ecuador, 



the money being furnished mainly by Glasgow and 
London capitalists. The Americans who held the 
concession had frequent difficulties, not only with the 
bondholders but with the contractors and the laborers. 
The work of excavation and grading was done by 
Jamaica negroes. The nation guaranteed the bonds 
of the railway, and by a somewhat subtle process 
the government debt was funded into these railway 
bonds which are a second mortgage on the customs 
duties. The obligations were issued as the respective 
sections of the railway were completed. Notwith- 
standing the frequent financial difficulties of the contrac- 
tors and of the English bondholders, the government 
paid the interest, 6 per cent, regularly. 

Quito is accounted by all travellers, in what relates 
to climate and picturesqueness, one of the most charm- 
ing capitals in South America. It lies in the central 
plateau, at an elevation of 9,371 feet. Though an 
ancient and historic capital, it has been modernized 
by electricity. The city has a population of 80,000, 
and supports a variety of local industries, including 
flour-mills, woollen mills, potteries, sugar refineries, 
and small manufactories of Indian felt hats ; yet it is 
chiefly interesting as the seat of government. Forty 
years ago a German-American, Frederick Hassaurek, 
who had represented the United States as Minister and 
Consul-General, wrote his impressions of Quito and 
its people, 1 and there has been little to add since then. 

One leaf from the Quito municipal records may be 
worth extracting. The Cabildo, or Council, under 
date of August 16, 1538, adopted this resolution: 

1 Four Tears among the South Americans y by F. Hassaurek, Cincin- 
nati, 1865. 


" Since the arrival at Quito of a certain attorney, Bachiler 
Guevara, many suits have been stirred up whereby, as there 
was no other attorney in the town, many persons might lose 
their legal rights ; and therefore the said Bachiler Guevara is 
forbidden to exercise his profession, or to give advice or his 
opinion on any controversy or matter of litigation, under pen- 
alty of ioo pesos for the first offence and one year's banish- 
ment for the second offence. " 

Cuenca, in southern Ecuador, is an important in- 
dustrial and commercial centre. It has between 25,000 
and 30,000 inhabitants, and is surrounded by a rich 
agricultural and stock-raising district. It is seeking 
a railway outlet to Machala on the coast ; but in the 
course of years it will have railway communication 
with Quito, for the route is a natural one for com- 
merce along the central plateau. This location is a 
link in the ultimate Pan-American Railway trunk line. 
From Cuenca to a junction with the railway already 
built from Duran beyond Guamote is less than 100 

Misunderstanding of the topography of Ecuador 
causes the country's resources to be underestimated. 
By many persons no account is taken of any section 
except the humid and productive coast lands. But 
there is the vastly productive inter-Andine region 
between the two chains of the Cordilleras. The trans- 
verse ranges between these two Cordilleras have the 
appearance of knots, and are generally described as 
the nudos. They do not offer insuperable obstacles 
to railway construction and other interior develop- 
ment, though ordinary roads are lacking. 

All the cereals are grown in this central plateau ly- 
ing under the torrid zone at an altitude of 10,000 fctt. 


It is the growing of corn, wheat, and other grains at 
these heights which causes the Spanish writers, with 
their warm imaginations, to write so enthusiastically 
of cultivation in the clouds. The region offers great 
opportunities for stock-raising, and generally it may 
be said to be the field for future immigration and 
colonization. Public officials of Ecuador glow with 
enthusiasm over this section of their country. A 
cabinet minister, in his official report, thus poetically 
and prophetically voiced the national aspiration: 

" Not much time will have passed when the inter-Andine 
railway, vanquishing all the obstacles which have halted our 
progressive march, will salute the wall of the Andes and come 
with the whistle of the locomotive to awaken the spirit, almost 
dead, of our mountain populations to the civilizing influence 
of industry and commerce, giving easy outlet to the richness of 
our fertile zones, and assuring us a broader life by placing us 
in immediate contact with the coast and bringing us nearer 
to the exterior at will, multiply the relations of common inter- 
est, break the yoke of preoccupations and routine custom to 
which we have submitted blindingly, and will stimulate us for 
work, and supply the deficiencies of our education. 

" The line of iron and steel will traverse our climates and 
will go collecting in its train diverse productions, to bear them 
to our ports and deliver them to the commerce of the world. 
The struggle for subsistence will then be borne among the 
peoples of the interior, and from province to province will be 
established reciprocally the interchange beneficial to their re- 
spective provinces." 

The Montana, or forest region lying on the eastern 
slope of the Andes and with its network of river basins 
stretching to the Amazon, is less exploited in the Ecua- 
dorian than in the Peruvian territory. The rubber 


in these tropical forests will be secured in the pro- 
cess of time. The development of this region on the 
part of Ecuador is not remote. But there must be 
means of communication. The government, realizing 
this, decided to build a railway from Ambato, on 
the Guayaquil and Quito Railroad, 100 miles to the 
Curarey River, a branch of the Amazon with head- 
waters near Iquitos in Peru. This line will enable 
that district to export its rubber through Guayaquil 
instead of out through the Atlantic Ocean. The rail- 
way route lies east of the Andes. 

Tobacco is grown in the north near the coast for 
home consumption. Sugar-cane is cultivated success- 
fully on the nearer border of the Montana and also 
nearer the coast, but it will be a long time before 
Ecuador exports sugar in appreciable quantities. This 
may be less true of cotton, which is becoming a national 
industry. A fine quality is grown in the northern dis- 
tricts, of which Ibarra is the centre, and the cotton tree 
thrives in other sections. The mills, which employ 
the cheap labor of the native Indian women, have 
proven successful, and they find a profitable home 
market, though it will be many years before Manches- 
ter is seriously hurt by their output. 

The minerals of the country are principally in the 
southern zone, though there are rich placers in the\( 
rivers of the north. The southern province, of which 
Zaruma is the centre, in the last century was famous 
for its gold-mines, and it is still known as El Oro, or 
the gold country. In late years little has been done, 
though the quartz veins have been worked intermit- 
tently and in some of the streams gold-washing has 
been carried on. Minerals are abundant farther south 


in the district of which Loja is the centre. Some cop- 
per is found, and there are deposits of iron and anthra- 
cite coal, silver, and lead. The engineers who made 
the Intercontinental Railway survey were impressed 
with the richness of this district, but its development 
awaits the building of the links in the Pan-American 
railroad, for the lack of transport facilities under pres- 
ent conditions renders exploitation of the mines too 
costly to be attempted except with large capital. 

In proportion to its size Ecuador, though sparsely 
populated, is as well inhabited as other South Ameri- 
can countries. The population is very largely Indian, 
with the usual Spanish intermixture. The total num- 
ber of inhabitants is 1,275,000. The whites and the 
mestizos , or mixed bloods, comprise about 25 per cent 
of the population. The central plateau easily could 
sustain an agricultural population of twice that number. 

The volcanic Galapagos Islands, lying 600 to 700 
miles west of the mainland, on the equatorial line, 
usually are considered an Ecuadorian asset. They are 
not, however, a source of revenue, and the 300 or 400 
people who inhabit them are not likely to increase to 
a larger number. At different times the government 
has been willing to dispose of the islands under the 
form of a perpetual lease for coaling or naval stations. 
Tentative offers have been made in Europe, but 
European governments hardly would seek to lease 
them for naval purposes without ascertaining the 
wishes of the United States. Since the Monroe Doc- 
trine as interpreted under President Roosevelt's ad- 
ministration forbids military establishments of foreign 
Powers to be set up in the Southern Hemisphere, 
no European country is likely to come into their 


possession. Naval officers on various occasions have 
urged the purchase of the Galapagos group by the 
United States, but the high price at which they are held 
by Ecuador, or opposition in Washington, prevented a 
bargain. The last negotiation was by Secretary Blaine 
during the Harrison administration. With the au- 
thority of the United States established on the Canal 
Zone and with the Pearl Islands in Panama Bay un- 
der the same authority, the necessary naval base in the 
Pacific is secured, and no further suggestions for pur- 
chasing the Galapagos group are likely to be favored 
by public sentiment. The only ground would be 
that, through the control by the United States, Euro- 
pean intrigues and, possibly, complications would be 

Chile at different times has been credited with want- 
ing to control the Galapagos Islands and establish a 
naval base at the Equator. Since the Chilean national 
policy is no longer one of unlimited naval expansion, 
it may be doubted whether that country now would 
care to undertake the expense of establishing and 
maintaining a station off Ecuador. But should Chile 
take this course, probably there would be no objection 
on the part of the United States, which, in the broad 
sense, as related to Europe, is a party in interest with 

Of recent years Ecuador has maintained political 
equilibrium, if not absolute political stability. Presi- 
dent Alfaro during his term was compelled to com- 
bat the reactionaries and the Church party, but 
his programme of Liberal measures was sustained. 
The greatest progress that has been made is toward 
financial stability. The money of the country was 


put on the gold basis, and that having been main- 
tained for several years, the promise of its continuance 
is encouraging. The standard of coinage is the gold 
condor, equal to the English sovereign in weight and 
fineness. The common circulating medium is the 
silver sucre, ten of which constitute the condor, or the 
pound sterling. The sucre is equal to 48.66 cents. 
Paper money is circulated, but the outstanding issue 
is not very large. There are two banks of emission, 
each of which has a capital of 3,000,000 sucres. By 
the last report the total amount of bills emitted was 
6,356,000 sucres. 

The Ecuador banks do a profitable business in 
international exchange. The Guayaquil institutions 
regularly pay 14 and 15 per cent dividends. Their 
deposits in the period from 1898 to 1904 rose from 
20,688,000 to 31,492,000 sucres. 



Pizarro's Landing-Place at Tumbez — Last Sight of the Green 
Coast — Paita 's Spacious Bay — Lively Harbor Scenes — An 
Interesting and Sandy Town — Its Climatic and Other Legends 
— Future Amazon Gateway — Sugar and Rice Ports — Eten 
and Pacasmayo — Transcontinental Trail — Cajamarca — 
Chimbote's Naval Advantages — Stipe's Attractions — An- 
con's Historic Treaty — Callao's Excellent Harbor — Impor- 
tance of the Shipping — Customs Collections — Pisco' s Varied 
Products — Rough Seas at Mollendo — Bolivian and Peru- 
vian Commerce for the Canal, 

WE steamed out of the Guayas River and into 
the Zambelli Channel for Tumbez by moon- 
light one evening. A hazy ridge lay directly in front 
of us, " Isla de Plata," or little Silver Island, where 
the Spanish pirates buried their plunder. The gold 
and silver have not yet been found. So many treas- 
ure islands with the buried booty of the buccaneers 
lie off the Pacific coast that one does not have time 
to stop and exploit them all. 

I always take a long look at Tumbez. There is 
not much to see, — a low crest of mountains some- 
where inland ; a long line of sandy beach bordered 
by mangroves and algaroba trees ; a slit in the fringe 
of foliage, which is the mouth of the river ; and 
a monotonous stretch of watery greenness. Back 
among the bushes, hidden, is the port. A few small 
sail-launches are hovering around, and after a time 


the port official comes out to the ship in one of 

Tumbez is historic. Somewhere among these man- 
grove trees Pizarro and his hardy followers penetrated 
with their boat one day and began that wonderful 
march known as the Conquest of Peru. And Tum- 
bez lies just over the line from Ecuador in what is 
still Peru and what was then the Empire of the Incas. 
Pizarro stretched his iron claws not only south to 
Cuzco but north to Quito. But I shall not recount 
history. Tumbez may be viewed to revive historic 
memories, but also it should claim a lingering look in 
order to keep alive a sense of the freshness of Nature. 
After it there is no green on the coast, — only rugged 
mountain masses, sand-hills, and towering snow-peaks. 
After Tumbez the coast chains of the Andes and the 
sublimity of Nature at rest, frowning but always ma- 
jestic. Sometimes the brown cliffs with cavernous 
mouths rising sheer from the water, and then the pla- 
teau between this wall and the Coast Range. Oftener 
the sandy plain stretching from the shore to the lower 
flanks of the Cordilleras ; beyond, the table-land ; and 
then the lofty profiles of everlasting hills made loftier 
to the sight by the one range having another for its 

The view of Paita after entering the expansive bay 
is a vision ranged by sand-hills. To the left are a 
hazy mountain, and a long reach of earth platforms, 
rocks, sand, and clay, rising longitudinally. To the 
right the land mounts to one level with torn sides like 
gravel viscera. The whole forms the rim of a bowl. 
The town hangs over the water's edge like a drooping 
willow tree. The buildings are cream-colored. 


The harbor is full of life. There are many small 
schooners and floats for loading cattle sail rafts, and 
bobbing canoes with keg-like anchors. A cloud of 
whirling sea-gulls hangs over the bay seeking the 
spoils of the kitchen refuse. The captain of the port 
in brilliant uniform comes out with his crew in their 
white caps, blue blouses, and red trousers, as though 
they were manning a Roman emperor's barge. The 
steamer is received, and then twoscore rowboats make 
for the vessel. The pirates board it. They are the 
fleteros y or boatmen, who must be braved and pacified 
at every port on the Pacific, for there is no other 
means of getting ashore. " A tierra y a tierra^ Senor, 
— To land, to land, Sir," they cry. One of them has 
you before you know it, and you are in the town. 

Meantime the women pirates have swarmed over 
the ship. They have all kinds of wares for sale, clay 
drinking-vessels, knick-knacks, limes and other fruits, 
and the Panama hats, for the manufacture of which this 
district is celebrated. But we may leave them while 
we go ashore. There are a custom-house and gov- 
ernment warehouse, good piers and wharves, and a 
passable hotel. A group of stocky soldiers, in part 
police and in part army, are in blue uniforms with 
heavy cartridge belts. All their faces are of the In- 
dian type. 

The life of Paita is seen in the market-place among 
the chattering women venders and their customers. 
All is animated, good-natured, obliging, but it is 
chiefly Indian with very little of the Spanish trace. 
The houses are of mortar, adobe, wild cane, or bamboo 
laths, some having mud roofs, and they are not bad 
dwellings. We go on a trip of exploration and find 


a really clean town — that is, as clean as a town can 
be that is swept by constant sand-storms — and evi- 
dences of good local administration. A hum like 
all the bees of the universe proves to be merely the 
murmur from the open school-room. There are 
two churches, one of cathedral architecture and a 
more modern one with a wooden steeple like a Con- 
gregational meeting-house in New England. In the 
plaza a forlorn but determined effort is made to coax 
Nature. Some palm blades are enclosed, and around 
the borders are scraggy carnations and scrub roses, 
while in the centre are Kansas sunflowers. Many 
of the dwellings also have climbing vines, dusty yet 
still green. 

Paita is historic in the annals of the West Coast on 
account of the legends that have been grouped around 
it. Most of them relate to its dryness. The rain is 
said never to fall. This is not quite correct, but dif- 
ficulty is experienced in finding when a shower may 
be expected. On my first visit after returning to the 
ship I casually mentioned at the dinner-table the in- 
formation given me by an old inhabitant that it rained 
every seven years. The polite German merchant from 
Lima corrected me with an apology. " You did n't 
quite understand the gentleman, ,, he said. " He 
told you that it had n't rained for seven years and 
they did n't look for rain for another seven years." 
After a while the Swiss drummer came aboard just 
in time for coffee. " Think of it," he remarked, cc it 
only rains in this place once in twenty-one years." 
From later and reliable sources of information I 
learned that rainfall can be looked for with a reason- 
able degree of expectation about every fourteen years 


in the Piura desert, though the moisture sometimes 
dries before it reaches Paita and the coast. The mean 
annual temperature is 77° Fahrenheit. 

One of the legendary libels which has clustered 
around Paita is that of the endless flock of goats. 
The basis of this legend is that the goats are driven 
down to trie port to water, and by the time they get 
back in the foothills they are so thirsty they have to 
return, and thus the procession is continuous. Seeing 
a long flock of them filing through one of the town 
streets and waiting in vain for the rear-guard to pass, 
the legend does seem to have a basis in truth, but it 
is a perversion or exaggeration of facts. 

Another libel is that the little dwarf palm which is 
seen at the top of the highest hill is not a palm at all, 
but only a slab of boards painted in imitation, so that 
the inhabitants may believe that a tree can grow in 
that soil. Actually it is a palm and not a painted 
post. Moreover, there are real trees. I found a 
group of the hardy pepper trees just back of the 
town, where the foothills branch off, and also some 
acacias, or thorn bushes. 

But while it is libelled, Paita also accepts some of 
the stories which are circulated concerning it. One is 
that of the English consul or commercial agent who 
had lived there forty years. When his pension and 
retirement came, he went to his old home in England, 
announcing that he would spend his remaining days 
in the grassy downs where his boyhood had been 
passed and would be laid away in the green ceme- 
tery of his native village. In six months he was back 
in Paita, declaring that it was the only place in the 
world in which to live and die. In the course 


of nature the old gentleman passed away at a very 
advanced age, and was given the largest funeral that 
Paita ever had known. 

Passing from these legends, Paita, which is now 
a town of 5,000 or 6,000 inhabitants, has a future 
as the emporium of northern Peru. It will be the 
Pacific gateway to the Panama Canal for the Amazon 
country. Its splendid sheltered bay, with all the fa- 
cilities for docks and wharves and sea-room for the 
commercial fleets of a dozen nations, assures its future 
greatness. It once was the rendezvous of the Yankee 
whaling-fleets. The railroad runs 60 miles back to 
Piura, the largest interior city of northern Peru, which 
has a population of 15,000. Piura is the centre of 
the cotton-growing district, and with the extension of 
the irrigating systems the cotton product alone will 
give Paita a considerable commerce. The total of 
its imports and exports is between $1,400,000 and 
$1,500,000 annually. The certainty of the railway 
being extended as far as the Pongo, or Falls of Man- 
serriche on the Maranon River 400 miles distant, is 
to be viewed as one means of diverting the rubber 
and other commerce of the Amazon from the Atlantic 
to the Pacific. The railway may be built before the 
Canal is completed. 

Paita is the petroleum port. The oil fields lie be- 
tween it and Tumbez at Talara. The Pennsylvania 
oil-drillers whom I met on two visits were graphically 
frank. They thought the petroleum possibilities were 
great, but they had a poor opinion of the English and 
French companies. The sulphur beds are near the 
Bay of Sechura, and are connected with the port of 
Bayovar by a railway thirty miles long. 


A night out from Paita and the morning discloses 
a sandy shore with round bluffs. After traversing 
what seems a causeway, there are rocks with a salt 
crystalline surface. " Guano/ ' briefly says the ex- 
perienced traveller, "the Lobos Islands." "But where 
is the port of Eten ? " cc Eten is over there," point- 
ing to a shell-like side of the hill. A smashing surf 
is beating, and nothing can be seen but the outline 
of a pier. Finally heavy surf-boats with strong-armed 
crews to handle the long oars make their appearance. 
The passengers are disembarked by means of crane 
and basket and are hauled up to the pier by the same 
agency. Eten is the outlet for the sugar and rice of 
the Lambayeque region, and a railroad spur runs a 
few miles back in the interior to Ferrenafe. Its 
yearly commerce is $1,300,000. The Yuncas Indian 
dialect is spoken in this region. It antedates the 
Quichua, which was the language of the Inca tribes. 

From Eten to Pacasmayo there is a low beach or 
no beach at all, with the mountains humped up at the 
foot of conical jagged peaks, beyond which are more 
peaks in regular order, the Coast Range of the Andes. 
Pacasmayo bathed in the sunlight and lying at the 
foot of a high mountain, presents a very pretty pic- 
ture. The surf is heavy, but the caballitos, or grass 
canoes, of the natives, are at home in the tumbling 
waves, and the going ashore is not an unpleasant ex- 
perience barring the ever present possibility of an upset. 
The jetty which aids commerce was built by an Ameri- 
can company. Pacasmayo ships large quantities of 
sugar from the valleys beyond and also some rice and 
fruits. Its oranges are famous. I never saw so many 
sea-birds as are in this vicinity. The pelicans hang 


like clouds, and often they dash for the water like an 
inverted whirling pyramid. Porpoises are numerous, 
while some seals and whales are found in these 

Pacasmayo was the seaport for the transcontinental 
trail or route to the Amazon which was followed both 
by the natives and the early Spaniards. The road led 
over the Cordilleras to Yurimaguas on the Huallaga 
River. Various projects have been attempted for the 
purpose of securing through steam and river naviga- 
tion. An American company has received liberal 
land grants and other concessions from the Peruvian 
government. The traffic is large enough to justify 
building a railway line from Cajamarca to connect 
with one of the existing coast spurs. 

Cajamarca lies across the Continental Divide in the 
valley of the Maranon River. It is a town of 12,000 
or 15,000 inhabitants, and is the centre of a large 
commerce. Freight rates by burros to the coast, the 
only present means of transportation, amount to $7 
per ton. Historically Cajamarca has an attractiveness 
all its own. It was here that the usurping Inca 
emperor Atahualpa, who seized his brother Huascar's 
birthright, hospitably received Pizarro, and, simple 
savage that he was, propounded the question which 
puzzled other untutored minds in other parts of the 
world during that epoch of discovery and conquest : 
By what right could the great man called the Pope 
give to the other great man called the King of Spain 
power and jurisdiction over land where he himself 
held no control ? 

Beyond Pacasmayo is the little sugar-loading port 
of Huanchaco. When the vessel puts in there, it is 


worth while going ashore and taking the diligencia 
(stage) or a horse across to Trujillo, for the road leads 
through a huaca, or ancient burial and treasure ground 
of the Incas. There is not much to see except the 
mud walls, but the short journey is a good introduc- 
tion to the old civilization. Trujillo is a very pretty 
and active little place on a small river. The railroad 
runs down to Salaverry on the jutting slope of the 
mountain, the summit of which is marked by a cross. 
It is the fourth port of Peru in point of trade, the 
commerce being about $2,500,000 each twelvemonth. 
There is a cemetery which tourists seek in order to 
read the inscription, " Se prohibe pasar la muralla los 
botes — boats are forbidden to pass over the wall." 
From this it may be understood that this graveyard 
sometimes is under water. From the sea Salaverry 
is an open roadstead nestling by a little cub of a 
mountain which crouches at the feet of a big mother 
mountain. All the time the towering peaks of the 
Andes are growing in grandeur. 

Chimbote, the next port, as yet has little com- 
mercial importance, because the coal and other mineral 
wealth of the country back of it have not been devel- 
oped. It has great prospects in the future, possibly 
as an American naval station, for the Peruvian govern- 
ment, it is understood, is anxious to grant the United 
States certain privileges there. It lies nearly midway 
between Panama and Valparaiso. The Bay of Ferrol, 
of which Chimbote is the port, is protected by a large 
number of islets. Its waters are always tranquil and 
seem more those of a lake in the interior than of the 
sea. The bay measures seven miles by five, and at all 
points offers anchorage of the first order. It is deep 


and a very large number of vessels of the heaviest ton- 
nage could at all times find a shelter. Quays and 
wharves could easily be erected. The railway extends 
to Suchiman, a distance of thirty-two miles. It is to 
be prolonged to Recuay, and some day may form an 
important link in transcontinental communication to 
the affluents of the Amazon. The ruins of the Inca 
aqueduct at Chimbote possess an interest alike for 
tourists and for engineers. 

Farther down the coast is the landing-place of Supe. 
I know Supe well. Five days were passed there once, 
not, the officials said, in quarantine, but simply under 
observation for the bubonic plague. The hamlet has 
artesian wells and a lighthouse, due to the public spirit 
of the planters. It ships cotton, sugar, cane rum, and 
rice. It also has a huaca. Several of my fellow- 
voyagers went ashore and dug in the graveyard. 
They came back with their finds, — pottery vessels 
looking suspiciously new and some of which, as they 
afterwards admitted, they bought from the natives. 
The visitor is allowed to dig up the pottery himself. 
The villagers are hospitable. They made no objec- 
tion when the ship's doctor unearthed a skeleton and 
left them a gratification, or hush money, for the privi- 
lege of carrying it off. His bribery was fruitless, for 
the captain of the Tucapel, complaining already of 
ill-luck and sailors' superstitions, gave him the choice 
of dropping the skeleton overboard or of being dropped 
overboard himself. 

Ancon is one of the minor ports sometimes utilized 
for commerce when Callao is under quarantine. When 
the fog rises, a perspective is disclosed of sandy moun- 
tains and of palm trees along the shore. The bay is 


a fine one. Seals and whales frequent it without 
disturbing the bathers, for Ancon is a resort to which 
all Lima comes by taking the railroad for thirty miles 
through the winding paths that penetrate and sur- 
mount the overlapping white sand-hills. Ancon is 
famous historically as the place in which the treaty 
of peace with Chile was signed when that victorious 
nation was exacting terms, and it is the Treaty of 
Ancon to which reference is so often made in the dis- 
cussion of the still unsettled Tacna-Arica question. 

To enter the port of Callao, the vessels follow a 
semicircular course around the rocks to get within the 
shelter of the island of San Lorenzo and the long sandy 
tongue of land. It is sometimes stated that the island 
of San Lorenzo was split off from the mainland by 
an earthquake, but geology gives no support to this 
assumption. Of recent years the government has 
initiated many improvements in the bay. One of the 
best is a fine new navy mole, and as the warships of all 
nations make Callao their frequent station, this im- 
provement is appreciated. There are also the darsena, 
or system of wharves and piers, controlled by the 
government, and the floating iron dock which was con- 
structed by a French company. This dock has a 
capacity of 5,000 tons. A new contract between the 
government and the company in 1905 relieved com- 
merce of many burdens. Callao is a fine port. The 
plaza in the centre, with its blending of tropical trees 
and statuary, forms a refreshing picture. The custom 
house is the most pretentious building, but there are 
other tasteful structures. The population of Callao 
is 30,000, but in the daytime it seems to be larger, as 
many of the people doing business at the port live at 


Lima, which is only nine miles inland and is connected 
by an electric trolley and two steam railways. The 
foreign commercial colony is a large one. Much of 
its social life centres in the English Club. 

All the commerce of central Peru passes through 
Callao. The shipping is extensive. Enterprising 
Chinese merchants have established a direct line to 
Hongkong via Panama, but the ships flying the 
English flag exceed all the other nations. Callao is 
visited annually by more than 1,000 coasting-vessels, 
steamers, and sailing-ships, with a cargo tonnage of 
175,000 to 200,000 for discharge. England is first 
in the shipping, Chile next, and Germany third. The 
maritime movement is more active than at any port 
south of Panama except Valparaiso. With the com- 
pletion of the Canal its commercial importance will be 
prodigiously enhanced. At present nearly half the 
trade of Peru pays tribute to its shipping, and the bulk 
of the revenues of the country are collected in its cus- 
tom house. For the last- year for which statistics are 
given, its foreign commerce amounted to $16,908,000 
out of a total for the whole Republic of $37,058,000. 
The imports were about $13,000,000 and the exports 
$4,350,000. The coastwise traffic, in which foreign 
vessels are permitted to engage, centres in this port. 

From Callao south are a large number of open 
roadsteads which hardly deserve to be called vessel 
landings, for they are entirely without harbor facilities. 
By means of lighters and small craft, freight and 
passengers are loaded and unloaded through the surf. 
Cerro de Azul means " blue hills," but the place is not 
very blue except for ship-captains. It is a shipping- 
port for sugar and cattle which are driven in from the 


interior. Lomas is another wretched little place. 
Chala is an attractive coast village, chiefly a cattle- 
loading port. The region is noted for the production 
of the granadilla fruit. The granadilla is similar to 
the mandrake, or May apple. 

Pisco is a thriving port, with an open bay sheltered 
by rocky islets. Among these are the Chinchas, or 
guano islands, which are yet capable of exploitation. 
The beach, with smooth rounded hills in the back- 
ground, bends like a scythe. There is green vegeta- 
tion, which is always grateful, and palm, olive, pine, 
and other trees. The beach is possible for bathing, 
but the sharks are too numerous to make it enjoyable. 

The town lies about a mile back from the port, 
with which it is connected by a mule tramway. The 
commerce exceeds f 1,100,000 yearly. A railroad runs 
from Pisco to lea, forty miles. It follows a rich valley 
in which there are many fine haciendas, or plantations. 
The products are both tropical and temperate. They 
include cotton, sugar-cane, alfalfa, and corn. A big 
cotton field on the edge of the port looks like a small 
section of North Carolina. Pisco is noted especially 
for the vineyards, which extend to lea and beyond. 
From these grapes is made the wine called Italia. It 
is enclosed in queer-looking oval-shaped earthen jars, 
some of them of enormous size. The best brandy 
that is to be had anywhere in South America takes its 
name from Pisco. It is a grape brandy. The pure 
article is superior to French cognac, but, alas ! the art 
of adulteration has been learned, and the real distilla- 
tion of the grape juice is not often procured. 

The district around Pisco is famous for its variety 
of tropical fruits, including bananas and paltas y or 


alligator pears. The Pisco watermelons also are noted. 
In the markets of Lima they are what the Georgia 
watermelons are in the markets of New York. I 
never tasted finer ones. The whole of the surround- 
ing country, when it can be watered, is of enormous 
fertility. A vast irrigation scheme has been projected 
for the region which extends south. There is a high 
range of blue-veiled, cloud-shrouded mountains, and 
then the plain of Noco, which spreads down to the 
gentle bluffs that overlap the sea. This plain parallels 
the coast as far as Tambo de Mora, and all of it is 
capable of irrigation. Tambo de Mora has some 
ancient tombs or burial-grounds and high mounds 
marked with crosses right on the edge of the village. 
Its shipments are cotton in bales, and liquors in casks 
and barrels. 

Mollendo, which is the railway outlet of southern 
Peru and of northern and central Bolivia, is one of the 
three worst ports on the West Coast. Iquique and 
Antofagasta farther down dispute the claims, but it is 
impossible to see on what grounds. They are positive 
and comparative while Mollendo is simply superlatively 
worst. Seen from the sea, the town looks well enough, 
spreading on the flat slope of the hill, with its party- 
colored houses glistening in the sunlight. On a feast 
day or national holiday the many foreign flags flying 
indicate the presence of numerous consuls, which is a 
sure indication of commercial importance. It is the 
getting into the port through the open roadstead that 
is terrifying. There is a causeway, and in order to 
land it is necessary to pass through this rocky opening. 
Sometimes the vessels have to wait several days before 
they can transfer their cargo to the lighters. 














For voyagers there is only one way, and that is to 
risk life and the hope of further voyaging to the care 
of the strong-armed native rowers. Long practice has 
enabled them deftly to grab the passenger from the 
ship's ladder and stow him or her in their craft. The 
manoeuvres are repeated until all who are courageous 
enough are in the boat. Then it is a question of 
breasting the breakers. The first time I went ashore 
there were three Peruvian women aboard. One was 
an old lady who made the trip to Lima twice a year; 
the others were wives of local merchants. The dame 
began her " Ave Marias." The younger women were 
less devout. Every moment they exclaimed, " Jesu 
Maria " and " Madre de Dios" but in the tone of a 
man swearing. A huge breaker swept over the boat 
and gave us all a bath. Then the craft danced on the 
crest of the next one like a cork. The aged lady 
became more calm, though she continued to pray. 
Later, when we were safely ashore, she confided to me 
that she always was terrified till the first ducking, and 
after that she felt that the shore would be reached. 

The sea is not always quite so bad, but it cannot be 
counted on two hours in succession to be what the 
natives call " consolodora" By that they mean, not 
tranquil or consoling, but comparatively calm. cc Com- 
paratively " is the difference between a raging sea and 
a roaring surf. 

Around the point from Mollendo is the Bay of 
Islay, calm, sheltered, and deep. It was once a place 
of importance. Now its population consists of a few 
fishermen. Everyone inquires why it was not made 
the port, to which one answer is that when the railroad 
was built the landowners became exorbitant in their 


demands, and there was no way for the line to secure 
terminal facilities except by paying more than the 
road was worth. Another explanation is that the 
property-owners of Mollendo, by liberal subsidies and 
other inducements, persuaded the railway to stop at 
the causeway. Whatever the reason, Mollendo now 
has vested rights as a port, and the change could not 
be made to Islay without encountering the most 
strenuous opposition. Consequently it will not be 
made. Recognizing this, the government in 1905 
undertook harbor improvements for Mollendo at an 
initial expense of $500,000. 

Mollendo has a kind of double-jointed custom 
house, the first for imports into Peru, and the 
second for imports which are to be carried through 
Peruvian territory up to Bolivia. The exports which 
come from the interior are chiefly alpaca and other 
wool. The last year for which figures are given, these 
amounted to 71,000 Spanish quintals, or approxi- 
mately 7,200,000 pounds. A considerable quantity 
of borax and minerals are exported and a small 
amount of coffee. The shipments of crude rubber 
amount to 500,000 pounds. Mollendo is second only 
to Callao in its exports and imports, the total com- 
merce averaging $5,000,000 annually according to the 
figures of the Peruvian officials. When the Panama 
Canal is opened, the major portion of the shipments 
from this district, which are light freight, will have 
the benefit of competitive ocean rates through the 
waterway with the tolls added, or around Cape Horn 
without tolls but with heavier coal bills and longer time 
in transport. The traffic will tend toward Panama. 



Pleasing Historic Memories — Moorish Churches and Andalusian 
Art — Pizarro's Remains in the Cathedral — Transmitted 
Incidents of the Earthquake — The Palace, or Government 
Building — General Castillo's Humor — Decay of the Bull- 
Fight — Cultured Society of the Capital — Foreign Element — 
San Francisco Monastery — Municipal Progress — Chamber 
of Commerce — A Trip up the Famous Oroya Railway — 
Masterwork of Henry Meiggs — Heights and Distances — 
Little Hell — The Great Galera Tunnel — Around Oroya 
— Railroad to Cerro de Pasco Mines — American Enterprise 
in the Heart of the Andes. 

PLEASANT Lima ! Fairest of transplanted capi- 
tals ! The Moorish memories of Andalusia lin- 
ger over the City of the Kings which Pizarro founded. 
The stern monuments of the Inquisition are yet with 
her. Seek them in the Senate Chamber, where the in- 
quisitors sat in judgment ; search for them just over 
the bridge, where the doomed victims after condemna- 
tion awaited their fate ; or in the Plaza Mayor, where 
the autos de fe were celebrated and the condemned 
were burned or hanged. Reflect, the last victim of 
the stake was a woman, Madame Castro. She was 
burned, in 1736, "for being a Jewess." She would 
talk heterodoxy ! 

Historic Lima! Seat of the viceroyalty ; throbbing 
heart and scourging soul of the Spanish colonial 


empire ; home of the Royal Audiencia, centre of law- 
giving and delegated authority, whence the Ordenazas 
— the minute code of government and administration 
alike for subjugated savage and freebooting colonist — 
were promulgated for all the vast territory from 
Panama to the Straits of Magellan and from the 
Pacific far beyond the Andes to the Amazon and 
La Plata! 

But the glory of rulers perishes. Few can name 
their quota of those forty-four viceroys of Spain who 
held the sceptre on the Pacific coast. After Pizarro, 
the Conquistador, of the iron fist and will of steel, 
and as his superior, came — who ? Blasco Nunez 
Vela was the first of the viceroys, — a harsh, haughty, 
obstinate servant of the Crown, whose blundering 
nearly overwhelmed Spain with the sunset of the 
splendid colonial empire at its very dawn. Who 
came between and who was the last? 

The sentimental antiquarian grieves over the de- 
struction of the viceregal residence of this last delegated 
ruler. It lay in a grove of palms and orange trees 
under the shadow of Mt. San Cristobal, with the ancient 
garden of the Descalzos, or Barefoot Friars, neighbor- 
ing it. The mansion was mediaeval and tropical. But 
the big brewery encroached on it. The horses and 
mules of the big brewery had to be stabled ; the beer 
wagons had to have room. Mr. Champion Jones, the 
English manager of the industry, gave a breakfast to 
foreign and resident society one Sunday morning. We 
revived the memories of the viceroys over an exquisite 
French menu, and some of us carried away a few 
mementos. The next day the vandal destroyer pulled 
down the walls. The mules are stabled there now. 


Yet there is cheer for the sentimentalist who mourns 
over departed glories. The mansion never really was 
the residence of the viceroy. It was only the bower of 
his favorite mistress, who dispensed hospitality and 
received the recognition that the stern society of the 
times gave to power and place without questioning the 
private morals of the high and mighty. Besides, it was 
long after the Inquisition, for the viceroy alty lasted till 
the young years of the nineteenth century. 

But the fourscore churches, with their minarets and 
towers, their tessellated mosaics and blending of bright 
colors, — they are Andalusian adaptations of Moorish 
art. Very shabby are most of them and not kept 
in good repair. There are too many mosque-like 
worship-places, and too few devout and open-pursed 
worshippers. From the roof of the American Legation 
I counted thirty of these churches. The artist might 
preserve all the charm of antiquity and yet satisfy the 
craving for the picturesque if the means were provided 
and the disposition to do it existed. These edifices are 
of Spain in the colonial epoch, and Spain never repaired 
church or castle or dwelling. Let them rust and fall 
apart, for have not crumbling stone and fading colors a 
graphicness of their own ? Yet with these decaying 
and neglected Moorish churches in Lima the ruin dis- 
closes too much that is tawdry, too much veneer. 

The Cathedral is modern, not moth-eaten or 
weather-rusted within or without. It took the place of 
the old structure, which was destroyed by earthquake. 
The interior is tile-paved and clean ; there are an- 
tique mural paintings, fine examples of wood-carving 
in the pulpit, solid silver altar fixings, the money value 
of which the guide recites with swelling pride ; and, 


greatest of all memorials, the bones of Francisco 

On my first visit to Lima, in the hurry of business 
matters and social engagements, I indulged in no 
sightseeing. The hotel runner who was piloting me 
about was puzzled. The Cathedral was only a block 
distant. " Won't you go to the Cathedral," he said, 
" and see the bones of Mister Pizarro ? " The lin- 
gering and respectful emphasis on the " Mister " was 
almost too much for my gravity. The Pizarros, as 
my recollection runs, were swineherds, and the ap- 
pellation Don never was theirs. But if respect were 
lacking for their family tree in their lifetime, no de- 
scendant could complain of irreverence or want of 
courtesy in this volunteer guide who sorrowed be- 
cause of my apparent indifference regarding the late 
Mr. Pizarro. 

On a subsequent visit I went to view the remains. 
The caretaker irreverently draws the curtains from the 
niche in the little chapel of the Virgin. I am sure the 
hotel runner would not do so. But habit in satisfying 
tourist curiosity has made the Cathedral guide a show- 
man. The remains are in a marble casket. The 
skeleton is well preserved. The frame is that of a 
big man ; the brains are kept apart in a jar. Rolled 
in a metal case is the parchment certificate of authen- 
ticity. This is what was the mighty conqueror, the 
most heroic of the Conquistadores, the peer of the 
indomitable Cortez. Shall we muse curiously, or 
shall we give way to the physical sensation of being 
in the anatomical museum of a medical school ? It 
depends on the temperament. 

The Cathedral has more than Pizarro's remains. It 


possesses the manuscript records of the Municipality 
of Lima. They are bound in modern calf, though 
the original parchments are sear and rusty and yellow. 
There is also a modern library which is open to the 
public. I found among its attractions, in one of the 
stairway vestibules, a unique painting on the wall 
typifying life in Lima in the sixteenth century. It 
represents a scene in the plaza. It pictures the gay 
cavalier of Spain in his fancy habiliments ; the sedate 
matron demurely wearing the historic mantilla ; the 
maid in the same headdress, but coquettish and an- 
swering the sly glances of the cavalier ; the native 
Indian race in groups of individuals ; women market- 
venders ; the Indians from the country with the llamas 
and burros, — all as we may guess it was in the six- 
teenth century and much of it as it is to-day with the 
native race. 

Lima's earthquake record is a continuous one from 
1683, when the great trembling was experienced, until 
the present day. One of the most memorable of 
these seismic disturbances was that of October, 1746. 
The memoirs of the viceroy, Count Superunda, tell a 
curious story of those days of wonder and terror and 
the scenes enacted, — how debtors sought for their 
creditors in order to pay them ; how enemies became 
reconciled and embraced one another in fraternal for- 
giveness ; how slanderers on their knees besought the 
pardon of those whom they had slandered ; and how 
courteous cavaliers, seeking injured husbands who 
until then had been ignorant of their wives' transgres- 
sions, asked forgiveness, which the injured husband, 
in spite of his surprise, would grant with an effusive 
embrace. A strange picture of morals — ten years 


after the Inquisition had burned Madame Castro for 
being a Jewess ! 

The balconies and arcades of Lima, the facades and 
graceful arches, are Andalusian, yet there is a trace of 
Greece in the adaptations of Doric and Ionic columns. 
The paseos y or walks and drives, the parks and 
gardens, in their grace and symmetry are Moorish 
again ; so are the kiosks. 

The Palace, or Government Building, which is to be 
supplemented by a new structure, is neither archaic nor 
modern. It is somewhere midway between two epochs. 
The tree which Pizarro planted, a fig, is in one of the 
inner courts. I saw the tree, but was more interested 
in the pictures in the anteroom of the Foreign Office, 
— old prints of American subjects. One of them was 
of Washington crossing the Delaware. 

In the Palace is a portrait of Joaquin Castilla, one 
of the sturdy characters in Peruvian history. He 
was a Spanish soldier without education but of great 
natural ability who joined the patriots in the struggle 
for independence and afterwards became President. 
He had the humor of Sancho Panza. Once a dele- 
gation of women waited on him. The request they 
had to make related to some matter of administration 
to which an answer would be embarrassing. The 
old warrior, though he was of low birth, had all the 
courtesy of a Castilian hidalgo. " Why, ladies," he 
said, cc you chatter like birds, all trying to talk at 
once. Now let 's have silence and let one of you 
speak for all." A pause. " Let the oldest lady 
speak." The tradition is that the delegation at once 
filed out and bothered the grim soldier no more. 
I have encountered many evidences of poverty in 

Church of San Francisco, Lima 

Church of San Augustin, Lima 


Lima, but the poorer classes seem to be contented. 
When the nights are chilly, they gather their blankets 
or shawls around them, according to the sex, and 
huddle in the Plaza. When the day is bright, they 
bask in the sunshine. The beggars are a nuisance in 
their obtrusiveness, but they are tolerated. 

On a down voyage a party of young foreigners 
persuaded the captain to hurry the ship into Callao 
Saturday night, so that they could get ashore and go 
over to Lima to attend the Sunday bull-light. The 
spectacle did not meet their expectations, which had 
been whetted by what they had seen in Spain. Once 
the bull-fight in Lima was a recognized social institu- 
tion and was very brilliant, but its glory has faded. 
Humane impulses have found place in the municipal 
regulations, and the horrible spectacle of the bull gor- 
ing a few poor old horses is not permitted. This takes 
away much of the excitement. The bull-fight has to 
be tolerated, and the President of the Republic attends 
the function given in his honor, but I noticed in the 
newspaper accounts that it was an indifferent affair. 
In time the bull-fight will entirely disappear. The 
races, which are popular, will take its place. 

The lottery will stay longer. The drawings are 
held on the public square every week. The lottery 
is legalized, and a portion of the proceeds goes to the 
charitable institutions. That is why it is so difficult to 
grapple with this evil which demoralizes all classes. 

Lima always has been noted for its cultured society. 
The Spanish spoken is the purest heard in South 
America. It is as pure as that of Andalusia or 
Madrid. Music, art, and literature, — these always 
have had their place. At the hospitable board of Dr. 


Isaac Alzamora, the former Vice-President, the wittiest 
host in Peru, I met many persons whose talents and 
accomplishments hardly could be equalled. The life 
of the rich families is refined, and notwithstanding its 
seclusion comes nearer to the American ideal of home 
than anywhere else in Spanish America. 

Lima has two leading clubs. The National is the 
more conservative, and is where all that is solid in 
business, politics, and professional life is met. The 
Union Club is composed of the younger element, and 
one of its attractions is that more liberty is permitted 
in gambling. 

The foreign society of Lima I found to be more 
in sympathy with the native society than almost any 
other place. Its dean, and the most popular foreigner, 
is Mr. Richard Neill, for twenty years the Secretary 
of the American Legation, affectionately called Don 
Ricardo by his Peruvian friends. French, Germans, 
Italians, even the English, find something in common 
with the Peruvians. The British colony is numerous 
enough to be split into factions. The Scotch element, 
very masterful in business, predominates. 

Among the Europeans the Italians are by far the 
most numerous. They have very largely the retail 
trade and they are property-holders in an unusual de- 
gree. A Little Italy lies across the Rimac River. 

A very large Chinese population exists in Lima. 
Much of it is the second and third generation. Origi- 
nally the Chinese were brought to Peru as contract 
coolie laborers, but of late years the immigration has 
been of a normal kind. The Chinese of this period 
have discarded the queue and have adopted the con- 
ventional dress. Some wealthy Chinese merchants have 


an appreciable influence in the commerce of the coun- 
try. These rich merchants are antagonized by another 
faction which objects to their assumptions of superior- 
ity. This element also is getting rich. China keeps 
a Consul-General in Peru with semi-diplomatic func- 
tions, and usually he has enough to do. 

I went one day in company with Minister Dudley 
to call on one of the notable figures in the cultured 
life of Lima. This was Dr. Ricardo Palma, Director 
of the National Library, the learned author of an in- 
structive History of the Inquisition and of many other 
books, both historical and literary. Dr. Palma, during 
the war with Chile, lost his own library and had the 
anguish of seeing the accumulated historic treasures 
of the National Library sacked by the victorious in- 
vaders, but he set to work at once to form a new col- 
lection. He has gathered together 400 manuscripts, 
and the Library itself is the best arranged and most 
easily accessible that can be consulted on the West 

The University of San Marcos also has played a 
notable part in the intellectual life of Peru. 

Of the many churches, convents, and monasteries, 
the most interesting is that of San Francisco. I went 
there one afternoon with Mr. Alejandro Garland, the 
best-informed man in Peru, to learn in a scant half- 
day something of the ancient institution, though a 
week would not have been long enough to wander 
through the cloisters. 

The monastery covers several squares. The con- 
templative, meditative life of the Middle Ages no 
longer exists. The friars are engaged chiefly in char- 
itable work. The jovial priest who was assigned to 


be our guide enjoyed having visitors. He explained 
that the incandescent electric lights had been adopted 
because they were cheaper than candles, and the Order, 
being poor, had to economize. But the monks in 
their cells are still restricted to the tallow dips. He 
courteously asked us to take afternoon tea with him. 
Here certainly was an innovation. We hesitated, but 
he pressed us so heartily that there was no escape. 
When the bell sounded, we passed into the refectory, 
were seated on a wooden bench alongside the board 
table, and were served with coffee and a slice of bread. 
The friars filed in, bowed politely, and took their 
places. Some of them looked with evident surprise 
at our host and his guests, but none with reproof. 
To ourselves our presence seemed incongruous, yet 
as a variation of the monotonous routine of their daily 
life it did not appear unwelcome to the Franciscans. 
We chatted in an undertone for a while, and on our 
departing the monks all rose and bowed. My com- 
panion, though a persona grata to the monastery and 
well acquainted with the priests, was as much surprised 
at our novel experience as myself. He never had 
heard of a layman or a visitor taking afternoon tea or 
coffee with the friars. 

The patron saint of Lima was Father Francis So- 
lano, the founder of the Franciscan Order in Peru, 
and the missionary who went through toils unutterable 
in seeking to Christianize the Indians. I was shown 
the cell in which he died, and then (a somewhat 
rare privilege) was permitted to see his skull. News- 
papers are received within the walls of the monastery, 
because, as the good father explained to me, in these 
stirring days it is necessary to be en rapport with what 












is going on in the outside world in order to do good 
works. Some of the friars read English. 

Until recently Lima was not a progressive munici- 
pality. It preserved the old Spanish traditions of 
dirt and indifference. But it had an awakening. 
Public works, such as befit a city of its political and 
commercial importance, were initiated. A loan for 
municipal improvements was taken by the local banks. 
This was gratifying, but the improvements themselves 
were more gratifying. The town is becoming an in- 
dustrial centre, with many small factories as the basis. 

A very important factor in the progress is the Lima 
Chamber of Commerce, whose members include all 
the leading merchants, both native and foreign. The 
Chamber has exercised a marked influence on the 
fiscal policy of Peru, and the Government with its 
cooperation has been able to strengthen the credit 
of the country abroad and to carry through the 
measures which are the basis of the commercial and 
industrial revival that has been enjoyed. Without 
the aggressive support of this body the establishment 
of the gold standard scarcely would have been 
secured. Its advice with regard to the negotiation 
of commercial treaties to which Peru aspires is valu- 
able, and its suggestions concerning administrative 
reforms in the customs usually receive respectful 
attention. I do not know any nation where the 
business man in public affairs — not in partisan 
politics — fulfils his proper functions so well as in 
Peru, and this is done through the concentration in 
the Chamber of Commerce. 

In the public works municipal sanitation is a leading 
feature. That is good. The death rate of Lima, in 


spite of a healthful climate, is disproportionately high. 
The returns show a birth rate of 28.37 as compared 
with a death rate of 37.43. The ignorance of the 
poorer classes of the proper means of living is not 
the only cause of this high death proportion, but 
they have to be taught hygiene, and the municipality 
has to lead the way. 

The climate of Lima merits the praises given it, 
yet the Winter season from June to September is raw 
and disagreeable and especially bad for rheumatism. 
Tuberculosis claims many victims. The legend is 
that rain never falls, that the dews and the moisture 
from the clouds, which is not precipitated, and the 
fogs on the coast, take the place of rain. This is 
not quite true. Sometimes there is actual rain and 
sometimes a drizzle. Minister Dudley and I had 
the proof two successive evenings, when we were out 
to dinner and had our high hats spoiled through 
our failure to carry umbrellas. 

Peru, as far as the main Cordillera of the Andes, 
is bisected by the Central Railway, which runs from 
the seaport of Callao to Oroya, following the course 
of the Rimac River. The distance is 138 miles. In 
these later days of mechanical triumphs it is still pos- 
sible to declare that this railroad is the engineering 
marvel of the world. It is an often told story, but 
one that bears re-telling. 

The name of Henry Meiggs in the Yankee mind 
is vaguely identified with something big in South 
America and with something wrong in the United 
States. Meiggs was a fugitive financier from Cali- 
fornia. He had been the treasurer of San Francisco 
County, had loaned the public funds to his friends, 


and when they failed to pay up had been forced to 
flee as a defaulter. He afterwards made good the 
defalcation. He first went to Chile, but in a few 
years settled in Peru. He built the Southern Rail- 
way from Mollendo to Lake Titicaca, which is itself 
a marvellous work. But his fame as a captain of 
industry and his reputation as a benefactor to Peru 
rest on the Central Railway. Meiggs was not an 
engineer. He was a financial genius with a bold 
imagination and daring mind, He had the capacity 
to get other men of genius, among them the Polish 
engineer Malinowski, to carry out his ideas on the 
side of construction. He could win the confidence 
of the money-bags of London and float South Ameri- 
can bonds at good prices, when the countries issuing 
those bonds could not give them away. 

In 1869 Henry Meiggs signed the contract with 
the Peruvian government to build the Oroya Railway 
for $29,000,000 in bonds, which he took and floated 
at 79, thus making the actual price $22,000,000. He 
carried the railroad construction as far as Chicla, 88 
miles, and built the great Galera tunnel ready for the 
rails, though they were not laid through it till years 
after his death, when the extension of the road from 
Chicla was carried to the terminus at Oroya by the 
Peruvian Corporation. The road climbs to its great- 
est elevation in a distance of 88 miles without a single 
down grade. The ascent is from the tropical ocean 
border to everlasting snow, through the sublimest 
scenery that the eyes of man ever dwelt on. There 
are curves, tunnels, bridges, viaducts, switchbacks, 
almost without number. 

What the railway is as a marvel of engineering 



construction can be exhibited in no better way than 
by a simple table giving the distances and heights 
above sea-level and the " V's " and " V V's," or 
switchbacks and double switchbacks. 


Name of station 

in miles 

in feet 



Santa Clara 



San Bartolomew, station and switchback 

Agua de Verrugas, bridge 

Cuesta Blanca, tunnel 


Challapa, bridge 


Quebrada Negra, bridge 

Tambo de Viso, bridge 

Chaupichaca, bridge . . 

Tamboraque, switchback 

Aruri, switchback 

San Mateo 

Infiernillo, bridge, and tunnels .... 

Cacray, double switchback 

Anchi, bridge ,. 

Copa, bridge 

Chicla, lower switchback 

Chicla, upper switchback 


Galera, tunnel 
































I travelled up the road tourist fashion in the regular 
passenger train, but that gives only a faint idea of the 



















wonders of the railway or the splendor of the scenery* 
The down trip is the best for observation This can 
be taken on an open flat car which is used for the 
bags of ore. Sometimes the railway officials transport 
favored guests part of the way down in hand cars, but 
while the experience is thrilling enough to satisfy the 
craving of the most exacting nature, the pace is too 
swift to give a chance for observation. I repeat, the 
proper way is on an open freight car. 

The tunnel and bridge, or viaduct it might be called, 
like a cobweb reaching from the gorge up to the sky, 
which generally is most sought after for experiences, is 
Infiernillo, or Little Hell, also called the Devil's 
Bridge. The elevation here is 10,920 feet. The 
road plunges out of one tunnel and across the great 
cobweb of steel and iron into another tunnel. 

The principal station is Casapalca. It is here that 
the biggest smelting- works are located. Both silver 
and copper are treated. Black Mountain Peak is the 
dominating spur in this neighborhood. Its height 
is 17,600 feet. San Bartolomew and Verrugas are the 
places that have a sad fame for the peculiar malady 
known as verrugas, or bleeding warts. It is a deadly 
and malignant disease of the blood, is of native origin 
and confined to a limited area. Its ravages were 
frightful among the laborers who built the road, but 
it rarely is heard of now. 

The most glorious views of the valleys shut in by 
the colossal precipices are at San Mateo and Yauli. 
On the up trip, until Chosica is reached, the valley of 
the Rimac is broad and regular, a panorama of green 
and yellow and white, — alfalfa, corn, sugar-cane, and 
cotton. Here, too, the ruined terraces on the steep 


mountain sides, vestiges of the Inca system of aque- 
ducts and irrigation, are numerous. 

Mt. Meiggs, 17,575 feet high, is the marker for the 
Galera tunnel. The mountain is snow-clad. Ordi- 
narily the flagstaff on the peak is visible. The tunnel 
is three-quarters of a mile long. On the down trip I 
noticed that we were four minutes in passing through 
it. The time, it might be supposed, would seem longer 
than it is, yet my guess was three minutes, and I was 
surprised when the watch showed a minute more. The 
cold air draughts were invigorating, like tempered blasts 
from an ice furnace, and there were to me no disagree- 
able sensations. I merely wondered when and how we 
would get out. 

Many persons who take this journey complain of 
the siroche> or mountain sickness, the nausea and 
headache destroying their pleasure. For those who 
suffer from this distemper a good plan is to allow 
two days for the trip and stop over night at one 
of the stations half-way up, Matucana being the most 

Night trains never have been run on the line, but 
this innovation may be made. Practical railroad men 
say that there is no more danger in the night than in 
the day, for in the daytime, with so many abrupt curves 
and tunnels, it never is possible to see very far ahead, 
and the locomotive headlight might really be an ad- 
vantage. The chief trouble of the railway manage- 
ment is in preventing landslides, but the greatest 
damage has been wrought by cloudbursts. 

The Central Railway was built in order to cheapen 
the transportation of the ores and the minerals to the 
seaboard. The bulk of the traffic always will be in 


one direction, though with the development of the 
Andine region a considerable increase in agricultural 
products and general merchandise in both directions 
may be expected. The management has not always 
been alive to its own opportunities as a freight carrier. 
Various companies formed to exploit the coal deposits 
were discouraged by the railway officials on the ground 
that the railroad would be put to too much trouble in 
hauling the output if the mines proved successful ! 

Oroya is snuggled in among four canons, which 
branch off almost at the points of the compass. 
There are gigantic granite and limestone wedges 
which split the town into triangles and have resulted 
in two distinct villages on the bends of the river. 
The elevation of Oroya is 12,179 ^ eet ' but tne P ea ^s 
around are easily a thousand feet higher, and a climb 
up one of them gives the most splendid view of moun- 
tain grandeur that I have seen in any quarter of the 
world. I have pleasing memories of several days 
spent in this neighborhood in amateur explorations. 

Oroya is a good place in which to observe the native 
life, both that of the cholos, or mixed race, and the pure 
Indians. All that is characteristic of civilization or 
partial civilization in the heart of the Andes may be 
seen here. The Quichua, or aboriginal Indian race, 
seems to have preserved its identity side by side with 
the tincture of Spanish or Caucasian blood which has 
produced the cholo. They appeared to me a reason- 
ably industrious people, especially the women. 

Oroya is the mining-centre for all this district and 
is the outlet for Cerro de Pasco. It used to be a 
vastly interesting trip by the highway from Oroya to 
Cerro de Pasco, and the interest is not greatly lessened 


now that the American syndicate which controls the 
copper and silver mines has built a railway 87 miles 
long. The railroad follows the canon for 15 miles, 
and then strikes across the great level plain, or pampa, 
of Junin, which it leaves at the foothills in order to 
climb up to Cerro de Pasco. The elevation of this 
mining-town is 14,200 feet. 

A pyramid on this plain catches the eye, and the 
inquiry is made as to its significance. It is the his- 
toric monument marking the last battle between the 
Spanish forces and the patriots in the war for Indepen- 
dence. The town of Junin near the lake of the same 
name, while it is one of mud huts and grass-thatched 
dwellings, is clean and pleasing in appearance. 

I never met quite so many weather changes as were 
encountered in riding across this pampa of Junin. 
We were in the midst of clouds so thick that they 
wet us through. Just ahead was a broad level of 
sunlight, and beyond that a driving snow-storm, and 
we found the sunlight and the snow exactly as they 
had appeared. There was a hail-storm which we also 
saw ahead of us. When it was pelting us, we could 
look back and through the snow see the sunlit plain 
and then the violet mantle of the clouds. 

Cerro de Pasco is a cold place, but the Montana 
people who are engaged in developing the mines say 
that they like the climate, and they compare it ap- 
provingly to that of their own State. Heretofore the 
silver output has been the great source of the wealth 
of this region. It is a story of the romance of always 
romantic mining history. It was in 1630 that an 
Indian shepherd, having made a fire to cook his 
humble meal and warm his hands, found the stones 

Pyramid of Junin 

Independence Monument, Lima 


covered with silver threads. That was the beginning 
of the silver mining, and since then 450,000,000 
ounces are known to have been taken out. The 
quantity was probably much larger, because the Span- 
ish tax of one-fifth was so heavy that it put a premium 
on evading it. The American capitalists who invested 
in the Cerro de Pasco region did so chiefly with 
the purpose of developing the copper deposits. By 
the burros and other pack animals the freight for the 
copper ore down to the railway at Oroya amounted to 
$40 per ton. That is why the first move of the 
Americans was to build the railway to connect Cerro 
de Pasco with Oroya. The coal outcroppings also 
gave encouragement that the smelters which were 
erected could secure cheap fuel. The money actually 
paid out in buying the mining properties and in build- 
ing the railway was understood to be $8,000,000. 
The probability is that at the present time the cash 
investment is not less than $10,000,000, and the capi- 
talists are considering another outlay to the amount 
of $15,000,000, to build a railway paralleling the 
Oroya road down to the coast, unless the London 
directors of the Peruvian Corporation make satisfac- 
tory traffic arrangements for freighting the copper and 
the bullion turned over to their line. 

Should the yet untouched mineral wealth of the 
Cerro de Pasco district prove a fraction of what the 
mining-experts have declared it to be, the output of 
ore will be only in its initial stages when the inter- 
oceanic canal is opened and the advantages of this 
route are set off against the long course around Cape 
Horn to Liverpool or New York. American pri- 
vate enterprise in the heart of the Andes will respond 


to American national enterprise on the Isthmus of 
Panama, and the pleasing historic memories of Lima 
will be blended with the more pleasing prospect of 
the Cordilleras' contribution to the material progress 
of Peru and her people. 



Capital of Southern Peru — Through the Desert to the Coast — 
Crescent Sand-hills — A Mirage — Down the Canon — 
®)uilca as a Haven of Unrest — Ar equip a Again — Religious 
Institutions — Prevalence of Indian Race — Wool and Other 
Industries — Harvard Observatory — Railroading over Vol- 
canic Ranges — Mountain Sickness at High Crossing — 
Branch Line toward Cuzco — Inambari Rubber Regions — 
Puno on the Lake Shore. 

AREQUIPA is the commercial, ecclesiastical, and 
political capital of southern Peru. It has a 
university, several colleges, an Institute of Agriculture, 
and a School of Arts. A fairer city never bloomed in 
volcanic desert. The valley of the river Chili is so 
vividly green that it seems alive. The snow cap of 
the extinct crater of El Misti is ever in sight, while 
the fleecy dome of Coropuna and the glistening pin- 
nacle of Chachani stand out like sentinels in white 
robes, all of them above 1 9,000 feet. Their icy breath 
is seldom felt, for Arequipa enjoys the balmiest climate 
that mortal could long for. It banishes pulmonary 
diseases. Life is gentle in this soft atmosphere, yet 
some persons complain that the night air chills the 
marrow. The mean temperature is 57 Fahrenheit, 
but water freezes in June and July. 

Arequipa, which is in south latitude 16 24', is 
7,500 feet above sea-level, about the altitude of the 


City of Mexico. The railway from Mollendo winds 
along the shore and through the volcanic soil for 106 
miles to reach the city, climbing almost spirally. This 
road was the first experience of Henry Meiggs as 
a railway builder in Peru. He took it as a sub- 
contractor, and spent $500,000 in supplying fresh 
water to the laborers and the animals during the 
eighteen months which its construction required. The 
length of the entire main trunk from Mollendo to 
Lake Titicaca is 330 miles. 

A better idea of the region which lies between Are- 
quipa and the coast is had by the slower mode of 
travel with horse or mule. I made this journey in 
company with two others during one of those periods 
when the port of Mollendo was closed on account of 
the bubonic plague, and when in order to get out of 
the country it was necessary to reach the little port 
of Quilca forty miles north of Mollendo. Leaving 
the railway at Vitor, an hour's run from Arequipa, we 
took the animals and started across the sand-hills to 
the ranch of Santa Rosa. It is the only habitation 
in fifteen miles, for there is no possibility of human 
dwelling amid those dunes. Stone heaps have been 
placed at various points to mark the route which is 
followed by the llamas and the burros and the occa- 
sional wayfarer, but the frequent wind-storms cover 
the mounds and they are not always to be discerned. 

It is the region of the famous moving sands and 
travelling hills. An experienced desert traveller, if he 
should be without a pocket compass, might " sense " 
the direction for the first half of the distance from the 
contour of the mountain range on the horizon. After 
that his danger of losing himself would not be so 


great, for there is an ascent to the top of a ridge of 
hills, and the landmarks here are more stable. The 
descent is down the flank of the barranca, or ravine, 
into the river valley. This is diversified by several 
pretty fincas, or farms. The dwellings are of adobe 
or bamboo. Alfalfa is raised and is the common 
fodder. There are also vineyards, some of them 
quite extensive. 

We put up for the night at the fine a of the former 
prefect of the Department. The owner of the estate 
was away, but the Indian tenants in charge gave 
us the hospitality of their dwellings, — the privilege 
of spreading our blankets in one of the cabins while 
they prepared for us the always appetizing broth, or 

We were up with the stars in the morning, for fifty 
miles had to be covered in order to reach the ocean, 
and there was no intervening shelter, no camping- 
place, — only billowy sand-plain, rugged ravine, and 
sombre canon. One of the Indian lads acted as our 
guide till we had wound our way up through the steep 
ravine and again out on the open. Then he gave us 
some hints to keep from losing our way and bade 
us cc adiosJ ' 

The pampa was spotted with many curious forma- 
tions of white sand in half-moon and crescent form, 
geometrical figures, as the whims of the winds had 
willed it. Some of these had gaps or circular passes ; 
others could be passed by circling around the foot- 
hills, while still others could be surmounted only by 
a straight-away ride ahead to the crest and down the 
slope. The sand was packed so tight that it with- 
stood the animal's heels as readily as a paved road. 


This vista of crystal crescent sand-hills impressed me 
as of a gigantic Turkish scymitar beginning in the lim- 
itless desert and stretching to the unbounded horizon. 

There was no vegetation, not even a blade of tuft 
grass or of the common cactus, nothing for the sight 
except the half horns of sand and the unbroken level 
of the pampa stretching ahead to the sloping moun- 
tain wall which seemed to lie straight across the path. 
But though the plain was absolutely barren, experi- 
ments have shown that this sterile soil is capable of 
producing in infinite variety, if only it is given water. 
The rain, if it could fall, would bring the oasis in a 
single season. Provide artesian wells, bring the snow 
rivulets down from Coropuna by the methods of 
modern irrigation, and this desert becomes carpeted 
with the verdure of growing green grain and yellow 
ripening fruit. 

In bargaining at Arequipa for the animals, we had 
been fortunate enough to secure cargo mules for our 
baggage and good horses for ourselves. At every 
level stretch the horses took the bridle and cantered 
off, racing for miles until checked by the riders. 
Then, after a few minutes of slower pace, again the 
canter and the exhilaration of the Arab on his Sahara 
steed. In this manner the snow-peaks of Coropuna 
and the crystal apex of Chachani were lost to sight 
before the mid-day rest, and the sheet of glistening 
water ahead ceased to fret us or puzzle us to deter- 
mine how a lake came there. It was the mirage, 
the quavering effect of the hot and dry atmosphere on 
the white sands. 

When the base of the mountain spur was reached, 
we found it an easy climb to the ridge, and then 


plunged down a long ravine and up again to another 
plain partly shut in by the hills. The woman member 
of our party claimed the privilege of her sex to ques- 
tion and doubt. She was sure we were getting lost. 
The glint of the sea far off did not reassure her. She 
insisted that we were going in the wrong direction. 
We should be headed southwest in order to reach the 
coast, and she had satisfied herself that we were go- 
ing northeast. I took out my pocket compass to 
convince her. Our actual direction was north. We 
had made one turn, and the gorge through which we 
had to descend in order to reach the sea required 
another turn, but she maintained to the end that we 
might have got there by some other route. 

The canon had many crevasses, clefts, and gashes, 
but none of these was wide enough to turn us aside, 
and after a time we reached the willow marshes and 
forded the Vitor River. Then a very steep climb to 
the hill, which was crowned by the church, and we 
were in Quilca. The caleta, or cove, which constitutes 
the port, lies below, and it took a half-hour's winding 
ride to get there. 

The vessel for Callao which we had hoped would 
be waiting had put in and out four hours earlier. 
When another ship would be along, no one could tell. 
The last passengers who had come overland had 
waited for two weeks. Every day we climbed the 
outjutting cliff and scanned the sea, watched some 
vessels go by without heeding our signals, and said 
harsh things of them. Then we dug into some of 
the aboriginal huts. The work was hot and not inter- 
esting enough to be pursued. The villagers had some 
relics, but the most valuable ones and those which 



indicated the highest lost civilization had come from 
the interior. Mica deposits abounded in the vicinity, 
and a passing American miner had posted up the legal 
denunciation, or claim, to them. The copper and 
gold mines were a hundred miles back somewhere in 
the red volcanic hills. 

The people were a kindly folk, and a vacant house 
was put at our disposal. They loaned us chairs, and 
our own sleeping-bags and blankets were all the rest 
of the furniture that was necessary. But the fleas ! 
Neither Texas, Havana, nor San Francisco ever bred 
fleas equal to those in the sands of Quilca. Fortu- 
nately for us a big shipment of cattle was coming 
down from the interior, and the owner had more 
influence with the steamship company than we had. 
I had spent a small fortune in cables. Mr. Meier, 
our consul at Mollendo, had reenforced me, and our 
minister in Lima was enlisting the full influence 
of the government. But all this would have been 
without avail if the steamship managers had not 
decided to put in and take the cattle away and the 
waiting passengers with them. Consequently instead 
of a fortnight our stay was less than a week. 

But back to Arequipa. It is a blending of old and 
new towns, a grouping of sandstone houses and euca- 
lyptus or camphor trees surrounded by greenish-white 
hills. The streets are fairly wide, and have open 
drainage, which is facilitated by the slope. They are 
not kept too clean. Blue is the dominant color of the 
dwellings and other buildings. Ambitious and some- 
what gaudy decoration is attempted in the way of 
painting the outside walls. The subject and the exe- 
cution generally are more novel than artistic. The 



place has a peculiarity that I did not note elsewhere. 
The tiendas y or stores, the dwellings of the poorer 
classes and of some of the fairly well-to-do, are tent- 
shaped with whitewashed mortar roofs. These give 
to the section of the town lying along the river the 
look of a permanent camp. The public institutions, 
the Carmen Monastery, the hospitals, are shut in by 
mortar walls. The thermal springs of iron and sul- 
phur are a few miles distant at Yura. 

Arequipa is a city of churches. One side of the 
plaza of San Francisco is taken up by the Cathedral. 
It is a new structure, rebuilt after the earthquake of 
1868, and was consecrated in 1893. It is roomy, but 
not notable as an example of ecclesiastical architecture. 
There are twin spires, and an arch at either end, the 
front being of smooth white lava rock. The Cathedral 
is not meant to be an earthquake tempter ; that is the 
reason for its simplicity of construction. Other churches 
are much more mediaeval and therefore much more 
picturesque. One of them has been partly wrecked 
by a seismic disturbance. 

Arequipa has been noted for its religious intolerance. 
This has entered into political affairs and has made it 
the centre of reactionary influences. Sometimes this 
reactionism has been the basis of revolutions or at- 
tempted revolutions against governments of liberal 
tendencies. But this spirit is slowly yielding. Ex- 
President Edward Romana, who, notwithstanding his 
education at a Jesuit college in England, antagonized 
the reactionary clerical influence, has an estate near 
Arequipa and makes it his home. His administra- 
tion was of immense good in carrying Peru through 
a critical period. 


Despite its inheritance of Spanish blood and cus- 
toms, Arequipa still illustrates the predominance of the 
Indian type. Natives with their burros and llamas 
fill the streets, gossiping and sometimes working. The 
official and higher classes show their Spanish origin. 
In the morning the women on their way to church 
with their black shawls and mantillas wrapped around 
them are followed by the servants carrying chairs, 
but in the afternoon and evening the sombre mantillas 
are changed for Paris hats and smart gowns, and the 
brightness of Andalusia sparkles in those piercing 
black eyes. 

Like Lima, Arequipa was founded by Pizarro ; and, 
like Lima, it has its earthquake history. The record 
runs quite evenly. 

The population is 35,000. There are a number of 
local industries, including a cotton factory and flour- 
mills, and it is the mining-centre for all the region that 
extends up to Lake Titicaca and beyond. It also is 
beginning to be a possible centre of the rubber export. 
The Inca Company, which controls the Santo Domingo 
gold-mines and which has valuable concessions for 
opening up the Inambari rubber region, has its head- 
quarters in Arequipa. But the chief trade comes from 
the wool industry. All the alpaca and other wools 
are marketed here. The alpaca wools are divided into 
two grades, the production of the superior being about 
two and a half times as large as the inferior. Much 
of the wool is handled by American firms and is 
shipped to New York and Boston. The vicuna, or 
finer grade, is shipped to France, and some of it finds 
its way back to the United States in the form of 
expensive rugs. 


The foreign colony of Arequipa includes a number 
of Americans engaged in mining, wool, railroading, and 
miscellaneous business. The Harvard Astronomical 
Observatory, half-way up the slope of El Misti, insures 
the presence of cultured Americans. During my visit 
Professor Bailey, the director, was off on a trip to the 
rubber country, and I did not have the privilege of 
meeting him. 

The journey from Arequipa up to Lake Titicaca 
affords a day of varied mountain scenery. The valley 
of the Chili is like a green thread looped or knotted 
somewhere far down amid the volcanic mountains. 
Conical and domelike snow-peaks, cupolas, apexes, 
pagodas, and pinnacles are scaled, gorges entered, and 
cross-chasms passed. These do not have to be 
bridged. Since there is no rainfall and no snow- 
slides from the distant peaks, the abysses are filled in 
and ballasted for the roadbed. Besides the long via- 
duct at Arequipa and a bridge across the gorge at 
Sumbay, there are no bridges on this railroad, hardly 
any culverts, and no long tunnels. The earth's sur- 
face is igneous soil, ridges of lava and plains of pumice 
stone. In some places the lava bowlders stand out 
in isolated, grotesque forms, the play of the fancy to 
name them. I amused myself for an hour in this 
manner. The sulphur deposits ought to have a dis- 
tinct commercial value. There is brimstone enough 
for a continent. 

The railroad, in the parlance of the South, " coons " 
the ridges at a maximum grade of 4 per cent. A 
gentle slope is reached, and we are on the edge of a 
plain intersected with clear streams over which hover 
many beautiful species of water-fowl. I have not seen 


elsewhere so great a variety. The pampa has some 
coarse grass and mosses, but no fir brush or even cac- 
tus. Patches of melting snow diversify it. Droves 
of llamas, alpacas, sheep, and even the rare vicunas 
with their ruddy skins are seen ; the latter seem to 
me more like red deer. The sun is bright, and though 
the air is sharp the cold is not penetrating ; when the 
train pauses, one can step out on the platform without 

A hill covered with brown bowlders in the back- 
ground, rounded and sloping mountains a little 
farther away, an ordinary railway station house, some 
huts close by with groups of Indian women and 
children huddled in the doorways, and the sign-post 
says, "Crucero Alto — 14,660 feet." It is High 
Crossing, the summit of the Divide. From Vinco- 
caya, at a height of 14,360 feet, to Crucero Alto, the 
distance is 20 miles, and the approach to the summit 
is so gentle that it scarcely is perceptible as an up- 

Several of the passengers have been complaining for 
an hour of headache and nausea, the unmistakable 
siroche, or mountain sickness. They tell those of us 
who are exempt that they always have it at this point. 
They are relieved when the descent has been begun. 
The railway follows through many turns and twists 
along the flanks of volcanic precipices until a chain of 
lakes lying in the basin breaks on the view, — a fine 
sight, the placid surfaces soothingly suggestive for 
irritated nerves and rebellious stomachs. No more 
siroche ! These mountain mirrors are Lakes Sara- 
cocha and Cachipuscana, 135600 feet above sea-level, 
1,000 feet higher than Lake Titicaca. The smelter 


for the silver mines is located at Maravillas in this 
lake region. 

At Juliaca the branch road runs off to Sicuani, 
87 miles away, whence a cart-road, now traversed 
by a traction automobile, continues to Cuzco, the 
historic Inca capital and still the seat of all that is 
most interesting in Peru, both in ruins and in what- 
ever relates to the descendants of the Incas. Ancient 
Cuzco's future as a modern city will commence when 
it becomes a station between Buenos Ayres and Lima 
on the Intercontinental Trunk Line. An important 
step in this development was taken in 1905, when the 
government contracted with the Peruvian Corporation 
for the extension of the line from Sicuani and the first 
section, as far as Checcacupe, was finished. The route 
is along the river Vilcanata through a populous and 
well-cultivated valley, where the products of the 
temperate zone abound. There are rich tributary 
districts which will be benefited by the lowering of 
freight rates, and encouragement also will be given 
to immigration through the easier access to Puno 
and Mollendo. 

The station of Tirapata is the starting-point for the 
Santo Domingo gold-mines in the Province of Cara- 
baya, which have been developed by an American com- 
pany, the Inca, composed of California miners and 
Pennsylvania oil-men. Some of the ore runs $4,000 
to the ton. The journey to the mines occupies five 
days. The company, in opening up a through line 
of communication to the railway, has accomplished 
some daring engineering work in building cable 
suspension bridges across the chasms. They are 
narrow, and the newcomer who knows he is under 


observation and wants to show his nerve, rides his 
mule along the frail suspended framework and makes 
a pretence of looking with unconcern into the gaping 
abyss. But after one demonstration of his physical 
bravery he usually develops moral courage enough 
to get off and lead the animal. 

The mining company has extended its operations 
and has acquired privileges of rubber exploitation 
from the Peruvian government. Under the contract 
it opens roads and mule trails into the forest region, 
and receives land grants and rubber concessions in 
compensation. Ultimately a route will be opened to 
the head-waters of the Inambari River, and this district 
will add to the output of crude rubber through the 
port of Mollendo. 

The opening of the river basins of the Inambari 
and the Madre de Dios is essential to the future 
traffic of the Southern Railway. In a message to 
Congress in 1905 the President of Peru stated that 
the bridle-paths and cart-roads under construction, 
or contracted for, aggregated 1,300 miles. A grant 
of 2,000,000 acres of land was authorized with the 
chief purpose of securing 200 miles of wagon-road. 
Besides the American syndicate a Peruvian company 
has extensive rubber interests along the left bank of 
the San Gaban. There are extensive gold washings 
in Carabaya and Sandia. Heretofore the rubber prod- 
uct of this region has followed the river courses till 
the Amazon was reached and it could be exported to 
Europe by way of Para, the time occupied in getting 
it to market being from six to eight months. By 
the cart-roads to Tirapata, ten to twelve days are 
required, and three days more by railway to Mollendo, 

Ruins of an Inca Fortress at Cuzco 


whence the transit to Europe after the completion of 
the Panama Canal may be made in thirty days or less. 

From Juliaca, a distinctively Quichua Indian collec- 
tion of adobe cabins, to Puno, the railway line is again 
straight up and down over the mountains, cooning 
the ridge once more, till the road begins to follow the 
more crooked courses of the waterways. It winds 
through a rich agricultural district, plain and valley 
where there are many pretty farms. The live-stock 
industry seems to be a flourishing one, for there are 
great herds of sheep, alpacas, llamas, and some 

Puno, on the shore of Lake Titicaca, is 12,540 feet 
above sea-level. It is a town of blue buildings lying 
in the concave side of the mountain. It is the head 
of the Department, has a population of 5,000, and is 
the customs port and the commercial centre. The 
vigilance of both Peruvian and Bolivian customs offi- 
cials is constantly exercised to prevent contraband 
trade in alcohol, of which the people are inordinately 
fond. Indian life is seen in many phases, especially 
on Lake Titicaca, where the natives with their balsas, 
straw boats with square grass sails and grass hoods 
that open and shut like an umbrella, lead a half-shore, 
half-sea life, fishing and trading. They did not seem 
to me an idle class, but rather good-naturedly willing 
to work if the labor were not too strenuous. 

Lake navigation begins at Puno, and since the place 
is the terminus of the railroad the shipping causes an 
unusual degree of activity for an inter-Andine town. 
Bolivian commerce comes up the Desaguadero into 
Lake Titicaca or directly across from the terminus of 
the Bolivian Railway line at Guaqui. The lake is 


interesting because it is the highest large body of 
fresh water on the globe that has steam navigation, 
but I saw no evidences of the peculiar properties 
attributed to its waters. The captains of these tittle 
steam-vessels are either Scotchmen or Scandinavians. 
I learned to my discomfort that when the winds were 
blowing Titicaca could become as unruly as Lake 
Michigan and could cause sea-sickness. A daring con- 
ception of engineering genius is to tap the waters of 
Lake Titicaca for the purpose of securing electric 
power and utilize them to supply motive force for the 

Puno formerly had a considerable trade in the highly 
prized vicuna rugs which are brought there by the 
Indians, but the industry has lagged in recent years 
due to the scarcity of the skins. A Chilean estab- 
lished a factory at Arica, and most of the pelts are 
carried across the Cordilleras to his market. The 
mineral deposits of the district include silver, mercury, 
copper, lead, and bituminous coal. The latter is lig- 
nite, but the existence of coal-oil or petroleum appears 
to be well established. The Americans who control 
the Santo Domingo mines had arranged to sink wells, 
but the failure to secure satisfactory transportation 
rates from the railroad company caused them to give 
up their project. 



Topography a Key to Economic Resources — Coast, Sierra, and 
Montana — Cotton in the Coast Zone — Piurds High Qual- 
ity — Lima and Pisco Product — Prices — Increase Probable 
— Sugar-Cane as a Staple — Probability of Growth — Rice as 
an Export and an Import — Irrigation Prospects — Mines in 
the Sierra — Geographical Distribution of the Deposits — Live- 
Stock on the High Plains — Rubber in the Forest Region — 
Iquitos on the Amazon a Smart Port — Government Regula- 
tions for the Gum Industry. 

TO know the topography of Peru is to understand 
her economic outlook. The key to her indus- 
trial growth and to the mastering motives of her na- 
tional policy is found in the knowledge of the three 
zones into which the country naturally divides itself. 
A lesson in physical geography is a study of the Peru- 
vian aspect of the Panama Canal. 

The zones are the Coast Region, relatively 1,500 
miles in length, varying in width from 20 to 80 miles, 
and extending from the foot of the Coast Range to 
the Pacific ; the Sierra, or Cordilleras of the Andes, 
including the vast table-lands, averaging 300 miles in 
breadth ; and the misnamed Montana, or mountain 
region, actually the land of tropical forest, and plains 
extending from the eastern slope of the Andes to the 
Amazon basins. The settlement of the boundary 
disputes with Ecuador, Colombia, Brazil, and Bolivia 
may reduce the 500,000 square miles of territory 


which Peru claims as her area, yet when the limits 
finally are fixed this trans-Andine region will still com- 
prise more than one-half the total extent. Its wealth 
is in rubber and the varied products of tropical agri- 
culture. The Sierra, in the future as in the past, is 
for the minerals, with alpaca wools and live-stock as an 
agricultural addition. 

The Coast Zone is for tropical and temperate prod- 
ucts. The principal ones are the vegetable family, — 
beans, potatoes ; the cereals, — wheat, corn, oats ; grapes 
and the generality of fruits ; rice, tobacco, sugar, and 
cotton. Except in reference to two great world sta- 
ples, they may be viewed almost solely in the light of 
domestic consumption. Sugar and cotton are on a 
different plane. 

Peruvian cotton production cannot become large 
enough to affect the world's markets, yet it may be a 
gain to the national wealth in the quantity which can 
be raised for export and also for the domestic spindles. 
The sands of Piura which stretch from the coast at 
Paita back to the Cordilleras have in them possibilities 
that are yet barely dreamed. The cotton tree of Piura 
amazes the beholder when he sees it in all stages of 
production, — in bud, in fleecy blossom, and in seed. 
The quality surprises the expert. It is finer than the 
finest Egyptian and is equal to certain grades of wool. 
It is known variously as vegetable wool and as wool 
cotton. Irrigation is employed to a limited extent. 
One ambitious scheme which was to bring 60,000 
acres under cultivation was stopped for lack of capital. 
In the Chira valley between 90,000 and 100,000 acres 
will be utilized for production when a canal $6 miles 
long is completed, and the crop will be increased by 


50,000 bales. An American company experimented 
on a project of watering the Piura lands by means of 
pumps to be driven by electric power from the river 
Quiros. The native field-labor in this region is reli- 
able, and probably is as efficient as that of the negroes 
on a Mississippi plantation. 

Cotton of good quality is raised in the central dis- 
trict of Lima and in the southern region of Pisco and 
lea. While rains are not common in these districts, 
the fogs at certain seasons are heavy enough to be 
accounted rainfall, and the moisture in the air is pre- 
cipitated in quantities sufficient for the product, taken 
with the somewhat restricted means of irrigating 
employed on the plantations. The cotton plant, no 
longer the cotton tree as in Piura, is met with for 
fifty miles north of Lima, and especially in the 
neighborhood of Ancon. The plantations lie under 
and between the overlapping sand-hills, side by side 
with fields of sugar-cane. Cotton is also grown from 
the north along the river Rimac to the lower slope 
of the Cordilleras. 

Farther south from Pisco the region extends as far 
as the little port of Cerro de Azul, where an excellent 
quality is obtained. This is sent north to Panama for 
transport across the Isthmus and then to Liverpool 
instead of through the Straits of Magellan or around 
Cape Horn ; but the cargoes will be larger when the 
Canal is opened and the expense of transshipment 
by railway across the Isthmus can be avoided. The 
cotton possibilities of the Pisco region are as yet 
in their infancy. They will begin to unfold when 
the projects for irrigating the great plain of Noco 
are put into effect. 


Taken as a whole, the advantages of Peru as a 
cotton-producing country are a suitable climate, the 
alluvial soil of the valleys, the facilities for irrigating 
the sandy plains, and a sufficiency of fairly cheap labor. 
The price of the land is a fraction of the value of sim- 
ilar soil in Egypt. An official publication of the gov- 
ernment places the yield per acre at 630 pounds, of 
which 250 pounds is lint cotton. 

The Peruvian cotton is free from boll weevil. 
When that pest was ravaging the Texas plantations, 
a thorough inquiry was made by Minister Dudley 
under instructions from Washington, and the uni- 
versal experience of the cotton-growers established 
that their fields never were visited by it. 

Gins for baling the product are imported both from 
England and the United States. Encouragement has 
been given the manufacturing industry in Peru by 
the cotton production. Some of the factories have 
paid fair returns, though, as in the case of Mexico, 
capital went into mills somewhat heedlessly and in 
advance of the demand which could be created for 
the manufactured goods. Factories, making chiefly 
the cheaper calicoes, are in operation at Lima, lea, and 
Arequipa, where the natives prove satisfactory mill- 
hands. Part of the manufactures find a market in 
Bolivia. The total exports of the manufactured 
goods for a given year were $ 110,000, while the 
imports for the same period reached $2,240,000. The 
exports of raw cotton in the present state of produc- 
tion are approximately $1,500,000 to $1,600,000 

What is known as the hard cotton, rough, is pro- 
duced in the Piura region, and in the dry years varies 


from 20,000 to 30,000 bales of 200 pounds. The 
moderate rough, chiefly from the lea district, amounts 
to 40,000 bales. The hard cotton with some of the 
moderate rough goes to the United States, but the 
greater portion of the latter is shipped to Havre and 
Liverpool. The production of the Egyptian, or soft 
cotton, is about 80,000 bales per year. It is governed 
by the American price, usually with a premium of 
1 to 2 cents per pound over New Orleans middling. 
The home factories consume 25,000 bales, the bulk 
of the balance going to Liverpool, though Barcelona 
obtains 6,000 bales and Genoa 2,000. 

From these figures it will be seen that the Peru- 
vian production is about 150,000 bales, or 30,000,000 
pounds. An estimate by a leading authority of the 
increased production when idle lands are brought 
under cultivation by means of irrigation is 375,000 
Peruvian bales (160,000 American), or 75,000,000 
pounds. Other authorities double this estimate. 

Peru has produced sugar for many years, and the 
industry has had the usual ups and downs, but it has 
capabilities of increase. About 125,000 acres were 
under cultivation in 1905, and 25,000 persons found 
employment on the plantations and in the mills. 
Both natives and Chinese coolies form the field hands. 
The production for export in recent years has varied 
from 100,000 to 125,000 tons, and it is gradually ad- 
vancing to 200,000, reflecting the decrease of the beet- 
sugar crop in Europe and some enhancement of the 
price, though that is subject to the customary fluctu- 
ations. The average production may be placed at 
140,000 tons, of which between 20,000 and 25,000 
tons are consumed at home. 


The raw sugar exported in the period from 1900 to 
1905 inclusive ranged in value from #5,000,000 to 
#7,000,000 annually. The by-products, particularly 
the aguardiente, or cane rum, add substantially to 
the value of the staple. The alcohol, in addition to 
the local consumption, finds a profitable market in 

The production of sugar-cane per acre in Peru is in 
the proportion of 56 quintals of sugar from 700 quin- 
tals of cane. The plantations are in the valleys of the 
streams which flow from the foot of the Coast Cordil- 
leras to the ocean. Though the sugar industry is an 
old one and though partial irrigation is employed, it is 
doubtful if Peru's present product is more than a frac- 
tion of what the soil can yield under universal irriga- 
tion. The cane-producing area is not confined to the 
coast. In the valley of Chanchamayo in the inter- 
Andine region are productive regions, and also in the 
valley of the Apurimac River in southern Peru. It 
may reasonably be said that within the next quarter of 
a century, provided the material development of the 
country goes forward without interruption, Peru will 
be producing 400,000 tons of sugar-cane, the major 
portion of which will be freighted through the Pan- 
ama Canal to New Orleans or Brooklyn refineries at 
lower rates than can be had by shipments through the 
Straits of Magellan. Of the output some goes down 
the coast to Chile and some up the coast to San Fran- 
cisco, a relatively small quantity around Cape Horn 
to Liverpool, and a large quantity across the Isthmus 
for transshipment to New York. The freight via the 
Straits is about 23 shillings per ton. The Canal is a 
positive factor in Peruvian sugar production. 


Peru imports rice for her own consumption and 
exports it for foreign consumption. The great rice 
fields are in the north, in the Lambayeque valley, and 
from this district in one year 4,100 tons were exported. 
But much larger imports came from China. The in- 
dustry is capable of development, yet chiefly with a 
view to local consumption. The normal expansion of 
this agricultural industry would appear to be in fully 
supplying the home demand and then in cultivation 
for the export trade. 

Cotton, sugar, rice, — all call for an artificially 
watered soil. Irrigation is ancient in Peru. No 
new system for intensive cultivation and for ordinary 
crops can be expected to surpass the marvels secured 
by the Incas. Whether the ruins of the artificial 
waterworks be those still observed at Cuzco, the an- 
cient seat of empire, or in the great passes of the 
Central Cordillera now traversed by the railway, or 
the old aqueduct at Chimbote, the wonder does not 
lessen. Can the moderns do as well as the ancients ? 
They must do better. While they may not excel 
the Inca system of aqueducts and of packing water 
up the perpendicular slopes of the mountains, they 
may surpass them in inducing production in the 
arid plains. The topography and hydrography favor 
artesian wells in some sections and in others complete 
systems of irrigating ditches. The artesian wells may 
tap those lost rivers which, starting from the Cordil- 
leras, dry up and reach the sea through subterranean 
channels. The arid tracts are fertile, probably due 
to the damp which is retained for a certain depth 

Peru has a very excellent irrigation law, the practical 



workings of which are satisfactory and from which 
good results have been obtained. The government 
has given wise attention to this subject. 

The future growth of the Coast Region in wealth 
and population may be said to be largely one of irri- 
gating ditches and artesian wells. 1 

The treasure beds of the Andes, as they have been 
exploited for centuries, are in the Sierra, though the 
output of the precious metals in the Coast Region 
has been great. The Department of Ancachs, which 
comes down to the sea, has enormous mineral wealth. 
The district lies within the two Andean chains which 
parallel the Pacific, and which are known as the 
White Cordillera and the Black Cordillera, the latter 
being nearer the coast. Raimondi, whose studies and 

1 On this general subject United States Consul Gottschalk quotes 
C. Reginald Enock, an English engineer, as follows : 

" Peru possesses a valuable element in the yet undeveloped hydraulic 
power which exists on both the eastern and western slope of the Cordil- 
lera of the Andes. The source of this water supply is the ice cap above 
the line of perpetual snow which crowns the summit of the range and the 
continual and exceedingly heavy snow and rain storms of the high 
plateaus. All along this vast chain, from Ecuador to Chile, there exists 
a series of lakes, practically astride the summit of the Andes, at altitudes 
varying from 12,000 to 17,000 feet above sea-level, and these, together 
with the streams to which they give rise, form the source of enormous 
hydraulic energy. The volumes of water which descend upon the Pacific 
side are not necessarily very great, but they are numerous and constant, 
and their fall is exceedingly rapid. 

"As an example, the river Rimac, which rises in the ice cap of the Cor- 
dillera, at an elevation of more than 17,000 feet, debouches on the coast 
at Callao, with a course not more than 80 miles long. This river is 
already used as motive power for generating electricity for the railway be- 
tween Lima and Callao, and could furnish constant and unlimited power 
over any portion of its course. Similar conditions exist, more or less, 
with the numerous other rivers and streams all along the 1,500 miles of 
Pacific littoral belonging to Peru." 



surveys were the basis of much subsequent exploita- 
tion, estimated that this Department could supply for 
export 700,000 tons of minerals annually for an in- 
definite number of years. Silver, gold, and copper 
are the chief sources of mineral wealth. In the Cerro 
de Pasco district, since control was secured by the 
American syndicate, the copper output is more im- 
portant than the silver production. Yet it is doubt- 
ful whether, notwithstanding the possibilities of the 
nobler metals, Peru has not more to hope from coal 
as a new industry during the next few years and 
especially during and after the Panama Canal con- 
struction period, than from gold and silver. 

The petroleum deposits are in the north between 
Tumbez and Paita, around Tolara, Zorritos, and Gape 
Blanco. Several of the English companies were not 
very successful, owing to bad management. The 
French company seemed to have the promise of 
better results. No contention is made that the oil 
is not there. In 1905 the output of the districts 
of Amotope and Tumbez was placed at 12,000,000 
gallons. The supply which is now obtained is utilized 
as fuel on the railways and in many of the smelters. 
The value of the annual production is approximately 

Government data regarding mining often are tinc- 
tured with the enthusiasm of the private prospector, 
yet for guidance the distribution of the minerals as 
they are given in official publications may be quoted. 
I have not undertaken to present the complete statis- 
tics of production, not only because they are confus- 
ing and unsatisfactory, but also because local and 
temporary conditions destroyed their value as an 



index of the normal output. 1 An example of this 
was afforded by the practical suspension of silver 
and copper mining in the Cerro de Pasco properties 
of the American syndicate until the new railroad 
could be completed and the smelters built and put 
in operation. But for the prospector and the capi- 
talist the preliminary information that is desired may 
be accepted in the form adopted by the government, 
that is, the geographical distribution of the minerals : 

Gold — Paucartambo, La Mar, Union, Angaraes, 
Cajamarca, Otuzco, Luya, Huamachuco, Arequipa, 
Aymaraes, Huamalies, Carabaya, Sandia, Tayacaja, 
lea, Huanuco. 

Gold Washings — Maranon, Inambari, and nearly all 
the rivers that flow from the eastern side of the Andes. 

Silver — Hualgayoc, Recuay, Yauli, Huancavelica, 
Pallasca, Pataz, Cailloma, Castrovirreyna, Cerro de 

Copper — Huaylas, Huaraz, Cam ana, Yauli, Cerro 
de Pasco, lea. 

1 The mineral output for a recent year when there was little activity- 
was placed at the following figures: 


Value in 
pounds sterling 




Lead, chiefly in argentiferous minerals 






The production of borax was 2,466 tons ; crude petroleum, 25,440 
tons, and its by-products 11,639 tons. 


Mercury-Cinnabar — Huancavelica, Chonta, Dos 
de Mayo, Puno. 

Iron — Piura, Larez, Calca, Huaraz. 

Sulphur — Tumbez, Paita, Chancay, Huaraz, 
Huarochiri, Cangallo, Arequipa, Camana, Moquegua, 

Coal — Huamalies, Dos de Mayo, Yauyos, Hua- 
rochiri, Canta, Tarma, Huaylas, Cerro de Pasco, 
Caylloma, Puno, Recuay. 

Petroleum — Tumbez, Lambayeque, Piura, Puno. 

Lead— Yauli, Huarochiri, Pallasca, Huari, Chilete 

The Peruvian mining-code and the corps of engineers 
which is maintained under it are of very great value. 
The annual tax on pertenencias, or mine claims, is 15 
soles ($7.50), but in the administration of the law 
frequent complaint is made of the encouragement 
given to claim-jumpers. Unlike most other countries 
of South America, Peru lays no export tax on minerals 
except gold. The future of the mining industry de- 
pends so largely on cheapening and increasing the 
facilities of transportation, that it will be better under- 
stood in connection with the explanation of the 
Peruvian railway system and the plans of the govern- 
ment for further railroad development. 

Live-stock or grazing may be said to be one of the 
industries of the Sierra, but in relation to the foreign 
commerce of the country it does not promise to be an 
appreciable source of national gain. Sheep-raising — 
alpacas, vicunas — is of the high plains. With the 
increase in the population at these altitudes through 
mining settlements, the flocks are not likely to grow ex- 
tensively. The vicuna, not being domesticated, is more 


apt to recede before the advance of civilization. Such 
growth as the live-stock industry may have in the Cor- 
dillera region may be looked upon chiefly as a means of 
supplying local consumption. The exports of hides and 
wool, while not necessarily stationary, do not indicate 
a heavy increase. The exports of hides are $7 50,000 
per annum, and of wools, chiefly alpacas, $2,000,000. 

The world does not yet fully grasp the possibilities 
and limitations of the Amazon rubber production, but 
the Peruvian government has a proper conception of 
it and has enacted legislation both to secure the de- 
velopment of the gum forests and to preserve them 
from heedless destruction. The rubber region within 
Peruvian territory has its main extension in the De- 
partment of Loreto and in the provinces of that 
interior country, but the area reaches almost to Cuzco 
and 'Lake Titicaca. All of it is within the Montana, 
or forest region. In the Loreto district the popula- 
tion does not exceed 100,000 inhabitants, if it reaches 
that number. The productive forests lie along the 
banks of the rivers. The crude rubber that is of the 
best quality is known as jebe. The coarser article is 
called caucho. The jebe is obtained from the incisions 
made in the tree, while the caucho is the sap that is 
had from cutting down the tree which produces it and 
then extracting the milk. It is claimed also that the 
rubber tree can be sown and cultivated, but for many 
years, or until the supply grows scarcer, this effort is 
not likely to be made. 

It is the aim of the authorities to prevent wanton 
waste and to preserve the trees. These are not al- 
lowed to be cut down. Two forms of contract are 
adopted. Under the first form the government leases 


to the grantees a certain number of acres for the term 
of ten years on condition of receiving a royalty ap- 
proximately of i cent per pound in addition to the 
export duty. Under the second form it leases the 
rubber walks (estradas) of groups of 150 trees at an 
annual rate of about 10 cents plus another 10 cents 
for each 2^£ acres (1 hectare) on which they are situated. 
A decree was issued in 1900, in pursuance of the law 
passed two years previously, fixing the manner in 
which the estradas, or rubber groves, could be located. 
Land in the forest region can be bought outright, can 
be located under rental, or acquired under contract of 

Iquitos is the centre of the rubber trade for Peru, 
and substantially all the product now goes out from it 
to the Atlantic coast under the name of Para rubber ; 
but with the completion of the central highway or 
transcontinental railway much of the product unques- 
tionably will come to the Pacific coast and pass through 
the Panama Canal. In 1858 Iquitos was founded by 
the Peruvian government as a strategic outpost. In 
1885, the year in which the rubber exploitation began, 
it was an obscure settlement. In 1905 its population 
was 20,000, and it was agitating municipal sanitation, 
electric lighting, and inviting bids for sewers. It is 
the third port of Peru in point of its foreign com- 
merce, which amounts to $3,575,000 to $4,000,000. 
The exports of rubber from Peru for the year 1904 
were $2,142,000, and they passed almost entirely 
through Iquitos. Since a contraband commerce is 
carried on in order to escape the export tax, the full 
production in a stated year is not obtainable. The 
quantity exported ranges from 1,200 to 1,500 tons 


each year. The exports are divided about equally 
between Havre and Liverpool. 

When Bolivia settled her controversy with Brazil 
over the Acre territory, she transferred a boundary 
dispute with Peru. The latter country and Brazil, 
after some threatening passages of diplomatic arms, 
agreed on a modus vivendi, and that the extent of rubber 
territory belonging to each Republic should be fixed 
by arbitration. This dispute did not relate so much 
to the territory contiguous to Iquitos as to the Yavari 
River frontier. This basin has an annual known pro- 
duction of 1,500 tons and a large contraband output. 
The southern districts as yet are in the initial stages 
of exploitation. The Inambari River basin, including 
the Marcapata valley, is an almost virgin field. 

The Peruvian government, having adopted effective 
measures for the protection of the rubber forests from 
prodigal destruction, also has sought to aid the various 
private enterprises by supervising the supply of labor. 
This is a much more difficult problem. The native 
Indians and the cholos are hardly numerous enough to 
meet the needs of the industry in its present state, and 
both persuasion and compulsion are exerted in order 
to force them to work. Its ultimate solution and the 
full exploitation of the rubber wealth of Peru must rest 
on the colonization of the trans-Andine region, and a 
gradual transformation into tropical agriculture of the 
districts which are not rendered unfit for habitation 
and cultivation by the annual high-water overflows of 
the Amazon's affluents. But for this river region, as 
for the other regions of Peru, there is no artificial aid 
which can compare with the Panama Canal. 



Importance of River System — Existing Lines of Railroads — 
Pan-American Links — Lease of State Roads to Peruvian 
Corporation of London — Unfulfilled Stipulations — Law for 
Guaranty of Capital Invested in New Enterprises — Routes 
from Amazon to the Pacific — National Policy for their 
Construction — Central Highway , Callao to Iquitos — The 
Pichis — Railroad and Navigation — Surveys in Northern 
Peru — Comparative Distances — Experiences with First 
Projects — Future Building Contemporaneous with Panama 

NEITHER the economic future of Peru nor the 
prospect of realizing the national aspirations 
can be understood without turning to the map and 
studying the waterways and the railways. The 
Maranon, having its source in Lake Lauricocha 
within the inner slope of the Central Cordilleras, flows 
in a northwesterly direction till about south latitude 
40°, when it turns abruptly northeast. The Ucayali, 
receiving its initial waters farther south and east of the 
eastern range of the great Cordilleras, flows north un- 
til it joins the Maranon below Iquitos and the two 
form the mighty Amazon. Between them flows the 
Huallaga, smaller than either, yet a great river. It 
empties into the Maranon. The general parallelism 
of the Maranon, the Huallaga, and the Ucayali afford 
alternative routes from the Amazon basin to the 


Pacific coast. The Huallaga was on the transconti- 
nental trail of the early Spaniards, who crossed the 
mountains from Pacasmayo to Cajamarca and then 
continued to Yurimaguas on its banks. 

The existing railroad lines of Peru extend from the 
coast toward the Andes, the only practicable system 
in the first stages of national development. The 
second stage is to secure a spine for these disjointed 
ribs by means of a main trunk line north and south — 
the Intercontinental or Pan-American idea — and to 
fill in the lacking links in rail and water transport 
from the Amazon or trans-Andine region to the 
Pacific. The intercontinental project contemplates 
rail connection to the shores of Lake Titicaca, so that 
ultimately there will be through communication with 
Buenos Ayres, and also the gradual and necessarily 
slower plan of joining railroad and water links north 
to the boundary of Ecuador. All of this will make 
for mineral development. 

The rubber industry of the Iquitos and tributary 
territory is to Peru what the fur trade of Oregon was 
to the United States in the period between 1830 and 
1850. The populating of the vast inlying country, 
the trans-Andine slopes and the river basins, means to 
Peru what the settlement of the Rocky Mountain 
region extending to the Pacific meant to the people of 
the United States. If the hardy pioneer class is lack- 
ing, and it is, the Peruvian national instinct is not 
wanting. Enlightened public men are seeking to find 
expression for it. Immigration, colonization, are the 
only means. Access, transportation facilities, ways of 
getting in and out, must precede colonization. There- 
fore the railway policy. But imperative reasons of 

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state polity require that the development shall con- 
verge from the Amazon toward the Pacific instead 
of from the Continental Divide toward the Atlantic. 
Hence the inestimable value of the Panama Canal as 
an incentive, a stimulating cause, an influencing factor 
in the national advancement. It fixes the Pacific coast 
as the unchanging goal toward which all Peruvian 
industrial growth must tend. 

It is desirable to have an intelligent grasp of the 
present railway systems of Peru, their management, 
and their bases of extension. The total length is 
about 1,400 miles. Most of them are of the standard 
gauge of 4 feet 8 J inches, and with few exceptions they 
are the property of the State. However, substantially 
all of them are operated by the Peruvian Corporation 
of London under the sixty-five years' lease executed 
by the government in 1891, when the English bond- 
holders assumed the foreign debt and took over the 
railways in compensation. This was the substance of 
the contract that relieved Peru from a crushing burden, 
though it also entailed heavy responsibilities which 
were viewed with misgivings that afterwards were 
justified. The contract included huge land grants, a 
practical monopoly of the guano deposits for a long 
period, exclusive rights of navigation on Lake Titicaca, 
and freedom from burdensome taxation. 

Some of the provisions in this agreement were very 
evil for Peru, and some were bad for the bondholders. 
Always it will be a subject of controversy whether the 
government or the Peruvian Corporation has been 
most at fault in the non-fulfilment of the conditions. 
The disinterested observer must admit that both have 
been to blame. Both entered on obligations which 


they could not meet, — the Peruvian government to 
pay annually ^80,000, or approximately $400,000, to 
the corporation ; and the corporation to make impor- 
tant extensions of the railways, particularly toward the 
Amazon, and to plant colonies. For the latter purpose 
it received a grant of 1,100,000 hectares, 2,750,000 
acres of land, in the fertile Chanchamayo valley. 

The corporation taunted the government that but 
for its lease of the railways they would have been 
abandoned and have become nothing more than trails 
over the mountains. On its part the company was 
as monumental an exhibition of English incompetence 
and mismanagement as can be found in foreign lands, 
where there are so many monuments of incompetence 
made possible by confiding English investors and dull- 
witted London directors. When the disagreements 
with the government got acute, its officers exerted 
themselves principally to blacken Peruvian credit in 
London and to keep other capital out. Their success 
for several years was satisfying to the resentful senti- 
ment of the managers and stockholders, if not profitable 
to their pocketbooks. 

The Peruvian Corporation, not on account of pro- 
gressiveness of its own, but through the enterprise 
of the American capitalists who acquired the Cerro 
de Pasco mines and built the railroad to connect with 
the line to the coast, and whose industries are furnish- 
ing it with traffic, began to earn money. Nominally 
it represents a capital of $100,000,000. While this 
capital is inflated, in the new and improving conditions 
of Peru there is a prospect for earning a reasonable 
return on the actual value of the leased railways. The 
corporation and the government have reconciled some 


of their differences, and the remaining ones may be 
compromised and the cooperation which is so essential 
be secured. 

I have noted that the physical feature of the 
Peruvian railway lines is their general direction from 
the coast straight to the Andes, and that the policy of 
the government is to supply them with a backbone by 
filling in links along the intercontinental location and 
to extend the transcontinental outshoots so as to secure 
the through rail and water outlet from the Amazon 
to the Pacific. Definite measures of legislation have 
been adopted in furtherance of these plans. The law 
passed in 1904 with the purpose of encouraging foreign 
capital, set aside the proceeds of the tobacco tax to the 
amount of $ 1,000,000 annually after 1905 as a guaranty 
for capital invested in railway building. The returns 
do not indicate that the income from tobacco will 
reach this amount for some years, yet the value of 
the legislation in establishing a fixed railway fund is 
very great. 

The government took energetic measures, and the 
extension of the existing line from Oroya to Huancayo 
was assured, as also the one from Sicuani to Cuzco. 
That leaves between 300 and 400 miles to be built 
across savagely broken country from Huancayo to 
Cuzco, in which the engineering difficulties are serious. 
But while it is ultimate rather than immediate, the 
closing up of this section is inevitable, and though the 
local traffic will not pay the government can afford to 
aid the enterprise just as the United States govern- 
ment helped the transcontinental lines by subsidies 
and bonds. The impetus given to railway building 
in Bolivia which insures through connection from 


Lake Titicaca to the border of Argentina makes it 
imperative that Peru, for strategic reasons of the great- 
est significance, shall reach Titicaca in time to become 
linked with the general system. 

The extension of the line from Oroya south to 
Huancayo, the first dozen miles of which was coinci- 
dent with the other railway construction, insures the 
progress of a very rich section. Well-populated val- 
leys rich in agricultural products are traversed, while 
mineral veins, especially copper and coal, are tapped. 
The famous quicksilver mines of Huancavelica are in 
this zone. The region as a whole, from the variety 
of its climate, offers encouraging prospects for immi- 
gration. The valley of Jauja is one of the most 
inviting fields for irrigation that is to be found within 
the limits of Peru. 

Routes from the Amazon to the Pacific are many. 
The one which promises the earliest realization is that 
known as the Pichis, or the central highway. When 
the contract was made with the Peruvian Corporation, 
this was one of the proposed extensions in which the 
greatest faith was felt, and the enormous land grant 
was chiefly to insure its construction. Disappoint- 
ment at the failure to carry forward this line was one 
of the causes of the resentment of the government 
toward the corporation and of the friction that fol- 
lowed. The surveys and explorations of Arana, 
Werthemann, Tucker, Wolfe, Barandiaran, Father 
Sala, Carlos Perez, and others, showed the feasibility of 
navigation from Iquitos to the Pichis, a total distance 
of 900 to 1,000 miles according to the river courses 
followed. Navigation was established. Then came 
the greater problem of climbing the clinging eyebrow 












of the Eastern Cordilleras through untried passes 
and scaling mountain walls to the puna, or table- 

Plans formed during the term of President Prado 
in 1879 were inaugurated by President Caceres, and 
under the administration of General Pierola in 1896 
the government undertook to open communication 
from the terminus of the present road at Oroya to 
the Pichis. The central highway was laid out and 
made passable for man and beast. " The mule path 
grows to a trodden road " — but not in the Andes. 
For much of the distance the highway meant only 
a trail, yet a way was opened chiefly through the 
genius of the Peruvian engineer, Joaquin Capelo. It 
was enormously expensive, especially since, on account 
of the controversies with the Peruvian Corporation, 
the government made a detour to avoid crossing the 
lands granted to that company, and by pushing straight 
up the steepest mountain-sides ignored the engineering 
basis of road-making. 

The history of the central highway has been written 
by Senor Capelo and other Peruvians. It is a brilliant 
chapter in hardy enterprise. Like so many State pro- 
jects, the full benefits were not reaped immediately, and 
much costly engineering work was allowed to fall into 
disuse. But in spite of misuse and disuse the achieve- 
ment stands out that the Pichis road was opened and 
communication with the Amazon established. This 
helped to preserve and strengthen the national spirit 
when the territorial integrity was threatened by the 
abortive movements for the separation of Iquitos and 
the Department of Loreto. 

The methods of locomotion employed and the means 



of following the central highway from Lima to Iquitos 
are given below: 


of travel 

Place of transit 


Total dis- 
tance from 
Lima in 

By railroac 
" horse 
" mule 

« « 

it ti 
ft ft 
tt tt 
ft tt 
if tt 

" canoe 
" steamer 


Lima to Oroya 

Oroya to Tarma 

Tarma to Huacapistana 

Huacapistana to La Merced . . . 
La Merced to Vista Alegre .... 
Vista Alegre to Tambo Enenas . . 
Enenas to Tambo kilometro 93 . . 
Tambo kilometro 93 to Azupizu . . 
Azupizu to Puerto Yessup .... 
Puerto Yessup to Puerto Bermudez . 
Puerto Bermudez to Iquitos .... 





In English terms the distance is 1,265 miles. The 
return journey requires five days more, as it is upstream 
from Iquitos to Port Bermudez. Variations of this 
route are possible. With a through railway from Lima 
to Port Bermudez, Victoria, or other navigable point, 
and the improved navigation which will follow, the 
time will be ten days. A telegraph line extends from 
Lima to Bermudez, and an irregular postal service is 
carried on with Iquitos. Under present conditions 
the traveller who makes the entire trip is rare, and 
there is no through traffic. Officials who may be ordered 
from Lima to the Department of Loreto prefer to 
make the trip by steamer from Callao to Panama, 
1,570 miles, by rail and steamer to New York, 2,030 


miles, by steamer from New York to Para at the 
mouth of the Amazon, 3,000 miles, and up the Ama- 
zon, 2,300 miles, to Iquitos. A journey of 8,900 miles 
in order to cover a distance of less than 1,300 miles 
is the most graphic illustration that can be given of 
the compelling force of through rail and water com- 
munication on the part of Peru with its Amazonian 
territory. It also is an example of the prospective 
advantage of traffic by the Panama Canal route, since 
the productive and undeveloped region of the Ucayali 
basin rivers is nearer to the Pacific than to the sources 
of the Amazon. 

The route traversed by the central highway with 
some modifications is feasible for a railway. The gov- 
ernment recognized this, and under the authority con- 
ferred by the law of 1904 put surveyors in the field to 
determine which is the most practicable and cheapest 
in the engineering sense of several alternative routes. 
The reasonable belief is that the distance to be cov- 
ered need not exceed 250 miles, at a maximum cost of 
1 1 0,000,000. The calculation made by Monsieur A. 
Plane, the representative of French commercial socie- 
ties who studied the region with a view to determining 
the prospective capacity of the rubber production, was 
$13,000,000.* But this was a general estimate and not 
an engineering reconnaissance. While it would not pay 
at once as a commercial proposition, he believed that 
the government would be justified in undertaking it. 
Some of the estimates have been as low as 17,500,000. 
Unquestionably the Peruvian government can afford, 
though not in a short period, to spend $10,000,000 
or $11,000,000 to secure this connection to the forest 

1 Le Perou, par Auguste Plane, Paris, 1903. 


regions and the development of the rubber and other 
resources which lie there. The rich Chanchamayo 
valley is within the zone of productive tropical agri- 
culture and offers an incentive to colonization. The 
settlement of the boundary dispute with Brazil regard- 
ing the frontier territory is a further motive for secur- 
ing transportation facilities for that portion of the 
region which may be conceded to Peru, and for. im- 
proving the unsatisfactory navigation of the Ucayali 
and its tributaries. 

When the government took measures for bringing 
the Pichis line within the sphere of early realization, 
representatives of the northern Departments sought to 
secure similar advantages for their localities which had 
been reconnoitred by Von Hassel and other explorers. 
Various surveys were ordered, and concessions in force 
were amplified. 

A project related to the central highway is that 
which contemplates prolonging the short spur of rail- 
way which runs from Chimbote so that it will reach 
Recuay, 137 miles from the coast, and then some point 
on the Cerro de Pasco line. The mineral deposits 
which exist along this proposed route include anthra- 
cite coal, and are exceedingly rich, but heretofore they 
have not been alluring enough to draw the full amount 
of the capital needed for the railroad construction. 
When the central highway is converted into a rail- 
road, the connection of Cerro de Pasco with Recuay 
will be more easily secured, and the Amazon region 
and the Ucayali basin may obtain an outlet to the 
seaboard through Chimbote as well as through Callao. 
Another route which has received official sanction 
is from Cerro de Pasco to Huanuco and beyond, 


following the course of the river Huallaga along the 
Pan-American location. 

An American company, the Pacific, which had val- 
uable mining and railway concessions in the North, 
and which among alternative routes had made engi- 
neering reconnaissances for a line from Pacasmayo 
through to the affluents of the Amazon, secured addi- 
tional exclusive privileges of navigation and exploita- 
tion of the rivers. 1 However, the selection of Paita 
as the seaport is more probable, and the government 
authorized a liberal law for this location, though the 
terms did not carry a financial guaranty. The project 
of a railway from Paita to the Falls, or Pongo of 
Manserriche, has captivated the imagination of the 
explorers and engineers who have reconnoitred this 
route to the Amazon, and who have foreseen the cer- 
tainty of an outlet to the Pacific as one result of the 
Panama Canal. Large vessels navigate the Maranon 
425 miles above Iquitos. 

The railroad necessary to connect the Pongo de 
Manserriche or Borja with Piura and Paita would be 
less than 400 miles. The extension of cotton culti- 
vation in Piura might prove of more utility in securing 
the railroad than the iron ore deposits, the commercial 
value of which capitalists may distrust. An advantage 
of this route is that the engineering difficulties are not 
serious, and the highest pass to be surmounted is not 
more than 7,200 feet. By one survey the Maranon 

1 Under the terms of the concession the Pacific Company was given 
the right to construct branch lines north to Ecuador and south to latitude 
io°, along with trading and water rights on the Amazon and its tribu- 
taries. Construction of the railroad lines was to begin in 1907 and to 
be completed within ten years. 


is 310 miles from Paita, though this is at a point 
above the Falls of Manserriche, the power from which 
it is proposed to utilize for electric traction. The 
railroad now covers the distance from Paita to Piura, 
and leaves the following distances along the proposed 
location : 


Piura to Vinces 30.0 

Vinces to Chalaco 30.0 

Chalaco to Cumbicus 19.5 

Cumbicus to Huancabamba 27.0 

Huancabamba to Tabaconas 30.0 

Tabaconas to Tambo-botija 25.5 

Tambo-botija to Perico 34.0 

Perico to Jaen 42.0 

Jaen to Bellanista 12 

Total 250.0 

Whenever this rail connection from Paita to the 
navigable waters of the Marafion shall be made, 
Iquitos will be at least 1,000 miles nearer to New 
York by way of the Pacific and the Panama Canal 
than by the Amazon and the Atlantic. 

Other tentative locations are one from the port of 
Eten through Jaen to Bellanista on the Marafion, 
about 240 miles, and from Salaverry via Cajamarca 
to Balzas on the Marafion, 200 miles. From through 
Suchiman to the Huallaga River are several trails which 
make the distance about 185 miles. From Pacasmayo 
several engineering reconnaissances have been made. 
One of these through Cajamarca reaches the Marafion 
at Balzas over a route which is asserted to be only 
138 miles in length. Other routes vary from 140 to 
150 miles. But it is to be remembered that Balzas is 
farther than Bellanista above the Falls of Manserriche, 
that is to say, above the waters of the Marafion 
open to steam navigation. 


It may be that the waiting for the full fruition of 
the Peruvian waterway and railway projects will be a 
long one. The public men who are guiding the pol- 
icy of the nation in the present progressive channels 
will have their spells of dejection, and the checks, and 
discouragements will cause periods of doubt. That is 
the history of most countries in their measures for 
material development, but it more especially is the his- 
tory of Spanish-American republics. The Southern 
Railway, which was to cross the volcanic Cordilleras 
and reach Lake Titicaca, was long a dream. Then 
the enterprise took form, was abandoned, reinaugu- 
rated, halted, and finally the government pushed a 
line of rails through the desert to the town of Are- 
quipa. After Arequipa was reached came the longer 
and more formidable extension to Titicaca. But in 
time the work was done. 

The Central Railway, the Oroya, was a huger task. 
Henry Meiggs carried it forward, with reckless confi- 
dence and superb courage, half-way up the gigantic 
Cordilleras, and died. Destructive war came. Peru 
was prostrate amid industrial ruins and political chaos, 
yet the forces of recuperation were not dead. After 
years they were vitalized. The Oroya line was pushed 
through to the mining-region for which it was meant 
to be the outlet, and there only remains the exten- 
sion, in the face of lesser engineering and commer- 
cial obstacles, to the navigable waters which reach the 
Amazon. The Southern and the Oroya roads were 
contracted for in the times of riotous national wealth, 
the era of the guanos and the nitrates, when the say- 
ing "As rich as a Peruvian" was the common way of 
describing the opulence of the country and its favored 


classes. They were built extravagantly, as national 

Future railways can have none of this profuseness. 
They can be had only by husbanding the revenues ; 
by strict retrenchment, even parsimony ; by outrun- 
ning at hardly more than a hare's pace the industrial 
and commercial development of the country in order 
that greater growth may follow. But they can be 
built for sound economic conditions, and patriotic 
reasons are their basis. If not simultaneous, their 
construction at least may be contemporaneous with 
the Panama Canal. 



Density of Population in Time of the Incas — Three Million In- 
habitants Now Probable — Census of i8j6 — Interior Country 
Not Sparsely Populated — ■ Aboriginal Indian Race and Mixed 
Blood — Fascinating History of the ^uichuas — Tribal Cus- 
toms — Superstition — Negroes and Chinese Coolies — Immi- 
gration Movements of the Future — Wages — European 
Colonization — Cause of Chanchamayo Valley Failure — 
Climatic and Other Conditions Favorable — An Enthusiast's 

N the times of the Incas the territory which is now 
Peru supported a dense population. The vestiges 
which remain of the intensive cultivation of the land 
show that it must have sustained a very large number 
of inhabitants. This population extended from the 
Sierra and its sides to the coast, and took little account 
of the forest region stretching to the Amazon. The 
enumeration made by the Spanish colonial officials in 
1793 has little value as a basis of estimating the in- 
crease, because it was not limited to the present Peru. 
It is interesting only as showing that out of a total 
of 1,077,000 inhabitants there were 618,000 Indians, 
241,000 mestizos, 136,000 Spaniards, and 82,000 ne- 
groes and mulattoes. Another estimate made at that 
period was of 1,250,000 persons. 

It is difficult to figure out that the population 
of Peru at the end of 1905 exceeded 3,000,000 
to 3,250,000, though an estimate of 4,000,000 was 


attributed to the Geographical Society of Lima a few 
years ago. The last census was taken in 1876. It 
gave a total of 2,673,000 persons. The enumeration 
admittedly was deficient, and an open question was 
whether the semi-civilized tribes in the trans-Andine 
region had been underestimated or overestimated. In 
subsequent years the Province of Tarapaca was ceded 
to Chile, and Peru suffered not only the losses caused 
by the war with that country, but also from the com- 
plete industrial prostration which supervened and from 
the intestine struggles of the revolutionary factions. 

Only within the last decade a basis of normal growth 
of population may be said to exist, and, with reference 
to the natural increase, the high rate of infant mortal- 
ity both in the cities and in the Sierra has to be kept 
in mind. A long period of comfortable existence and 
of hygienic education must elapse before this mortality 
will be sensibly diminished. In many communities the 
birth rate and the death rate are evenly balanced, 
while there are districts in which the grave claims 
more than the rude cradle. 

By the national census of 1876 Lima had 101,000 
inhabitants. In November, 1903, a municipal count 
fixed the population at 131,000. Lima has received 
the cream of the immigration in recent years, and has 
drawn to itself all the floating elements. The smaller 
coast cities have shown no such growth, while in 
the interior the towns appear almost stationary as to 
their inhabitants. If the rate of increase were 30 
per cent for the whole country, as with Lima, and if 
the census of 1876 could be accepted as a safe basis 
of calculation, the total population to-day would be 
approximately 3,500,000. The notable increase of 


Peru's foreign trade in recent years is evidence of 
improved consumptive capacity, due to industrial pros- 
perity, rather than of an increased number of consum- 
ers. It came too swiftly to be accounted for by the 
growth in population, and therefore does not support 
the theory of upward of 3,500,000 inhabitants. 

I have taken into account the statement of travel- 
lers in the interior, who have found the people more 
thickly distributed than they had thought. Two 
young Americans, Messrs. Whitehead and Peachy, 
who in 1902 travelled through northern Peru to the 
Amazon, encountered a relatively dense population. 
The engineers who in 1895 made the Intercontinen- 
tal Railway Survey from the border of Ecuador to 
Cuzco, calculated the number of inhabitants along the 
route to be 482,000, substantially in agreement with 
the national census and with no signs of a marked 
increase. The location was through the Sierra and 
directly on the line of many of the most populous 
Andine towns. Engineers for private companies who 
made a reconnaissance of a route along the left bank 
of the Maranon, were surprised to find every little 
stretch of plain or valley between the glaciers occu- 
pied and cultivated by an Indian family, yet when 
they came to estimate the aggregate of the inhabitants 
the total was not a large one. This inter-Andine 
population may be numerous enough to justify the 
belief that the census of thirty years ago was not wide 
of the mark, but it is impossible to find grounds for 
the assumption of an increase of 30 per cent since 
then. The population of Peru at the beginning 
of the Panama Canal epoch reasonably may be 
placed at 3,250,000. 


In the enumeration of 1876 the estimate was that 
of the inhabitants 57 per cent were pure Indian, 23 
per cent mestizos, and, except for a fraction of negroes, 
the remaining 20 per cent was Caucasian, chiefly Span- 
ish. The aboriginal proportion is now smaller than it 
was thirty years ago, since European immigration has 
added to the white population, and the mixed blood 
also has been augmented. 

There is no more fascinating history than that of 
the Quichuas, the aboriginal population of Peru which 
still survives. The distinctions are yet marked 
between this basic race and the races which were 
subjected, such as the Yuncas, who dwelt in the 
northern part and along the coast and whose language 
is still spoken by their descendants. Some of the 
tribes around the shores of Lake Titicaca are not of 
pure Quichua descent, being sprung from the rival 
race of the Aymaras, while in the forest region the 
Chunchos and others of the uncivilized tribes have 
little of the Quichua traditions or customs and speak 
dialects of their own. But the great mass of the 
population of Peru to-day is Quichua. The Spanish 
and other intermixtures which have produced the 
ckolos, or half-breeds, have had four centuries to work 
out the blood mingling, and the cholo in every com- 
munity is very easily distinguishable from the pure 

The Quichua is of the soil. Under the Incas the 
communal system of land cultivation prevailed, and 
the natives, even in the loftiest recesses of the moun- 
tains, were agriculturists. They found means to 
irrigate the most barren spots. On the plains and 
valleys they cultivated the land. The fondness for 

Group of Peruvian Cholos 


the freedom of the country still survives, and many 
of them prefer this life to being grouped in villages. 

On some of the great haciendas the crops are 
apportioned on shares almost as in the times of the 
Incas. The natives are born shepherds, and the pas- 
toral life suits them. In the Cordilleras, wherever 
there is a pass or a valley, the cabins of the Indians 
are scattered about as thickly as the producing qualities 
of the land will permit. 

Much of the work in the mines is done by the 
cholos or mestizos. These also are the freighters who 
handle the droves of llamas, burros, and mules that 
bring the ore from the mines and take back the 
supplies. On the coast the population might be called 
chiefly cholo, for here the intercourse with other races 
has made the conditions different from those in the 

In the forest region the tribal customs are observed 
almost as before the Spaniards came. Many of the 
tribes are still restricted to bows and arrows, and as 
they are hostile to the government and accept its rule 
unwillingly, the authorities take pains to see that they 
are not encouraged in procuring fire-arms and learning 
the use of modern weapons. The marriage relation 
is primitive, but the traditions are rigidly maintained. 
An Englishman who had spent some years in the 
basin of the Ucayali told me that in one tribe polyan- 
dry was practised. An epidemic of smallpox had left 
many more men than women. 

The owner of an hacienda on the edge of the forest 
region gave me an account of the marriage customs 
which had prevailed almost immemorially. One 
instance which had come to his attention was of a girl 


of nine who was married to a boy of eleven. When 
the child-wife was eleven years old, she was a mother. 
The gentleman had verified this incident himself 
and had no question of the age of the husband and 

The native is deeply attached to his surroundings 
and does not take readily to labor elsewhere. The 
climate has something to do with this unwillingness 
to move. It has been found by experience that the 
inhabitants on the punas , or table-lands 5,000 feet 
above the sea-level, do not work well when taken 
up another 5,000 feet. They are not only home- 
sick ; they suffer from real physical illness. It is 
the same with those who are brought down to the 
lower plains. Alcohol is the worst drawback to their 
physical well-being and moral advancement. The 
coca leaf, the essential principle of cocaine, which 
they use as a food, is far less responsible for their lack 
of physical stamina than cane rum. 

In many of the villages of Peru which I visited 
I formed an impression that the natives were further 
advanced than in similar villages in Bolivia and Chile. 
There was more cleanliness, more evidence of good 
order and of wise local administration. They are 
a brooding, solitude-loving race, though not altogether 
spiritless. How far they still preserve the traditions 
and sorrow over the Incas I do not profess to know, 
but their gentle resistance makes it more difficult to 
impose civilization on them than would be sullen 

While the army is distasteful to the Indian popula- 
tion, and while they evade the conscription wherever 
possible, it is one of the strongest civilizing forces. 


The discipline is good, and the change of environment 
also is advantageous. Obedience has been so fixed 
a habit of the natives since the Spanish conquest that 
they never think of questioning authority. As to the 
degree of superstition which is mingled with the nom- 
inal adhesion given by the Indian populations to the 
Church, I do not profess to judge. 

The Peruvian government seeks to enforce a good 
school system, and in the larger towns and villages 
with some success. But on the part of the mass of 
the Quichuas there is still inextinguishable hostility 
to learning Spanish, not the less effective because it 
is passive. The suggestion has been made that the 
authorities provide a system of primary schools where 
Quichua shall be the language and shall be taught 
systematically. It is the lingua general, or common 
speech, of a large majority of the inhabitants. 

At Huanuco, where a German agricultural colony 
was established forty or fifty years ago, the sons of 
the early colonists still speak German, and many of the 
Quichuas in the neighborhood have acquired a smat- 
tering of that language. Apparently they distinguished 
between the tongue of the conqueror and another 
strange tongue. 

Under good industrial and administrative conditions 
a natural increase on the basis of the present Quichua 
and cholo population may be expected. More com- 
forts of life, a little rudimentary knowledge and prac- 
tice of hygienic conveniences, will help to alter the 
disproportion between the birth rate and the death 
rate. Somewhere in their nature a spark of ambition 
may be kindled. 

The negro element in the population in Peru is 


sometimes remarked by strangers. They are told 
that it has become thoroughly intermixed with the 
native race. In the early days of the viceroys, when 
African slavery was exploited by the two great Chris- 
tian powers, England and Spain, many Africans were 
brought to Peru. It is thence that the name Zambo 
or Sambo came. They are yet called Sambos. Though 
the Spanish and Indian intermixture is said to be 
thorough, there seems to be much of the African racial 
identity still preserved. One day in Lima I watched 
the religious procession in honor of Our Senor of 
America. Nearly all the processionists were negroes, 
unmistakably so. 

The Chinese coolies were brought to Peru in the 
fifties. They still work in the sugar plantations and 
the rice fields and a few of them also in the cotton 
fields. The coolie in the second generation, however, 
becomes a storekeeper and a property-owner. On 
some of the sugar estates the Chinese steward in the 
course of a few years leases the plantation and later 
becomes the owner. There are many wealthy China- 
men in Peru, and not all of them made their money as 
merchants at Lima. The policy of the government is 
not to encourage coolie immigration. 

For the industrial and political future of which Peru 
dreams there must be immigration as well as the 
natural increase of the present native population. The 
potter's clay is not all at hand. Some of it must be 
brought in. This immigration will be along three 
lines, which may be called topographical or geograph- 
ical, • — first, on the coast ; second, in the Sierra ; 
third, in the trans-Andine country and the vast basin 
of the rivers that feed the Amazon. A phenomenal 


growth in the population of the latter region during 
the present generation is not probable, though it has 
enormous colonization possibilities which gradually 
will be utilized, especially with the opening up of the 
means of communication. Some of them, too, are 
European or Caucasian possibilities, for the explora- 
tions of numerous scientists and their studies have 
shown that the European can live and thrive in these 
regions. These climatic and similar observations may 
be had from a score of books giving the experiences 
of individuals. 

In the development of its mines Peru necessarily 
must add to the population of the Sierra. Mining 
labor now is hardly sufficient, and the preference of 
the natives for agriculture and for service as freighters 
makes the problem one of increasing difficulty. The 
wages in the mines are good, varying according to 
locality. In the Sierra day labor can be had for 
about half a sol, which is equivalent to 25 cents gold. 
The American syndicate, in building the Cerro de 
Pasco Railway, paid the natives a sol, or 50 cents, and 
got satisfactory returns. But for the mining develop- 
ment of the future miners from Spain and Italy should 
supply the deficiency that will exist so long as sole 
reliance is placed on the natives. They may come in 
considerable numbers. 

Irrigation of the region between the Sierra and the 
coast is assured, and this is going to furnish the basis 
for the largest and earliest increase in population. A 
portion of this increase should also come from Italy 
and Spain and perhaps also from Germany, for the 
Germans are highly successful in semi-tropical agricul- 
ture. The Italians have been very successful in Peru 


in retail trade and in some of the mechanical employ- 
ments, but the conditions also are favorable for them 
in the agricultural pursuits. The vineyards in the 
region around Pisco and lea seem to afford an espe- 
cially inviting field for them. By the time the Panama 
Canal is open the big transatlantic liners from Genoa 
and Naples which now come to Colon should be 
bringing a full quota of Italian immigrants through 
the waterway to the Peruvian ports. 

The government has enacted liberal legislation pro- 
viding for immigration and colonization, but it does 
not follow the theory of government-aided colonies. 
Its course is sound. It grants lands to private enter- 
prises for colonization, and in the industrial plans 
which are now a part of its political policy there is 
a certainty of an increased population to be drawn 
from abroad. An old law authorizes an annual ap- 
propriation of $50,000 for encouraging immigration, 
and the passage of immigrants may be paid, but this 
is the limit of state aid. 

Colonization plans by private enterprise received a 
check a few years ago, when the Peruvian Corporation 
abandoned its efforts. Of the total grant of 2,750,000 
acres in the region of the rivers Perene and Ene and 
the Chanchamayo valley, more than a million acres 
were set aside for immediate peopling. The corpora- 
tion began to attract settlers to the lands, but the 
movement was feeble and was not sustained. The 
complaint made was that instead of inviting fresh 
and virile European immigration it drew the dregs 
from neighboring countries, taking colonists who had 
proven their own worthlessness in the places where 
they first settled. The experiment was still another 


instance of ignorant London directors and incompetent 

Many of the earlier colonists in this district went 
into coffee-growing with fair success. The climate, 
the soil, the slopes of the Cordilleras, all were favor- 
able. Good crops were raised and found a profitable 
market. But this market was obtained at the period 
when Brazil was changing from the Empire to the 
Republic, and when through that and subsequent dis- 
turbances the supply to meet the world's demand 
was interrupted. When the Brazilian crop became 
abnormal in its productiveness, weighting the price 
down below the level of profitable production, coffee- 
raising no longer was business for the colonists in 
Peru. They themselves did not clearly perceive the 
cause of their distress. Many of them, instead of 
turning to other products, got discouraged and went 
away. But merely because of this failure there is no 
ground to believe that in the future colonizing move- 
ments in this region, intelligently directed by the 
Peruvian Corporation or by any private company, 
will not succeed. The climatic and soil conditions 
are inviting, and the only question is the means of 
utilizing these gifts of Nature. The entire Pichis 
zone is favorable to European colonization. When 
it is connected with the Pacific by the extension of 
the present railroad to Port Bermudez or some other 
river point, its colonization capabilities will be appre- 
ciated ; for the lack of access has been the draw- 
back. This rich region lies within 300 miles of the 

A similar observation may be made concerning the 
northern districts. From any one of half a dozen 


little seaports the valleys of the Maranon and its 
tributaries are less than 200 miles distant. But 
the Continental Divide lies between, and this mass 
of mountain wall must be pierced by the railroad. 
Once this is done, the immigration possibilities of 
northern Peru will develop rapidly. 

For all this there must be faith, and resolution, 
and definite measures. It is not a question of set- 
tling a new land, for Peru is an old, old country. 
Nor is it the problem of reconstructing the ancient 
civilization of the Incas, or the civilization which 
twentieth-century iconoclastic antiquarians charge the 
Incas with stealing from other races. In its eco- 
nomic aspect the matter is simply one of getting 
more people into a country which has plenty of 
room for them. 

During a stay in Lima I spent an afternoon with 
the Rev. Dr. Wood, a Methodist Episcopal mis- 
sionary, who had been in South America for thirty 
years, and who had made the most discriminating 
study of social conditions of any Yankee living in 
the Andes. I came away permeated with some of 
Dr. Wood's enthusiasm and, I hope, with some of his 
devout faith. The South American continent, he 
declared, had been held in reserve by Providence 
for a time when the population of other countries 
would press for room and for means of subsistence. 
The present Peru, he thought, was easily capable of 
supporting 20,000,000 inhabitants in conditions of 
life and comfort similar to those enjoyed by dwellers 
in the Alps and the Apennines. 

But if, in the years pending the completion of 
the Panama Canal, Peru by natural increase and by 


immigration can add 1,000,000 to her population, 
that modest addition will determine her industrial 
future. A million more people during the next ten 
years will mean an extra 2,000,000 in the decade 
that follows. The horizon does not need to be 
extended farther. 



Seeds of Revolution Running Out — Educated Classes Not the Sole 
Conservative Force — President Candamo's Peacemaking Ad- 
ministration — Crisis Precipitated by his Death — Triumph 
of Civil Party in the Choice of his Successor — President 
Pardons Liberal and Progressive Policies — Growth in Popu- 
lar Institutions — Form of Peruvian Constitution and Govern- 
ment — Attitude of the Church — Rights of Foreigners — 
Sources of Revenue — Stubborn Adherence to Gold Standard 
— Interoceanic Canal's Aid in the National Development. 

WHEN Professor James Bryce wanted an apt 
illustration of the numerous elections in the 
United States, he compared them in their frequency 
to revolutions in Peru. The comparison was not 
unjust. Civil wars have occurred almost as often. 
The bloodiest drama was enacted as recently as 1895. 
In that year the streets of Lima were choked with 
corpses and ran with the blood of brother shed by 
brother. No one to-day can give a rational cause for 
it. A few years earlier, when Peru yet was prostrate 
at the feet of Chile, there were revolutions and counter- 

But the seeds of revolution do run out after cen- 
turies. The soil grows barren. The soil in this case 
is the mass of aboriginal population, the Indians and 
the mixed bloods, who have known only blindly to 
follow one chief or another. Slowly they learned that 
in the revolving of rulers they were no better off. An 


English monarchist repeated to me the story of an old 
Indian at Chosica. He was bent with age and hard 
work, was in rags and was a beggar. This was after 
the Spanish power had been broken and independence 
established. He came one day to the group of polit- 
ical chiefs who were then in control and were con- 
trolling for the benefit of themselves. They were 
eulogizing Liberty and the glory of having done with 
kingships. The old fellow listened and then meekly 
remarked : " But, sirs, it is all the same. Under the 
viceroy I was a beggar. Under the Republic and 
your Honors, I am a beggar. I don't see that Lib- 
erty means anything to poor old Juan Martinez. " 

For the bulk of the inhabitants it has not been quite 
so bad, because even the republican semblance of 
government has been better training for them than the 
monarchical rule. Yet in the uprisings and counter- 
uprisings they were like the old beggar. Whatever 
dictator was in and was promulgating high-sounding 
proclamations of liberty, they were no better off than 
under his predecessor. They followed one cacique 
(chief or boss) or another, killed one another at his 
behest, and then settled back in the old way. But of 
late years the condition of the mass of the Indian 
and mixed population has improved. I take this 
statement on the evidence of discriminating foreign- 
ers, and not as a conclusion from my own observa- 
tions, which were made within too short a period 
to afford a basis for comparison. It is the testimony 
of the Europeans that more than one ambitious 
leader has been willing to lead revolt when his fac- 
tion lost, but he could not get followers or dupes, 
and therefore he acquiesced. 


It is true also that the educated classes have become 
more stable and have put forth a stronger influence 
against political disturbances. Yet over-credit should 
not be given them, for the hot Spanish blood in all of 
them has not been brought down to an even temper- 
ature. This was very forcibly impressed on me during 
the Spring of 1903, when the presidential election was 
pending. Senor Miguel Candamo, for several years 
president of the Lima Chamber of Commerce, was the 
only candidate who had a political party back of him. 
He had been an influential supporter of the liberal 
administration of President Romana. He was the 
choice of the Constitutionalists and Civilistas. There 
was another aspirant whose canvass was entirely per- 
sonal. Besides the Civilistas the only important po- 
litical organization was the Popular Democrats, who 
were supposed to represent the popular element, or 
the masses. They nominated no candidate, but they 
sought to control the Congress. 

One of their leaders, Senor A , calmly explained 

to me that they would get control of Congress, would 
declare the election null and void, and substitute their 
own man for Senor Candamo. He looked on this as 

perfectly legitimate politics. Senor A had been 

educated in the United States in order to have the 
benefit of free government, had spent his youth there, 
and after returning to Peru had held important public 
offices. When he was explaining to me the plans of 
his faction, the future of Peru hinged on the peaceful 
succession to President Romana. 

After Senor Candamo had been chosen for a faction 
which had not even proposed an opposing candidate, 
to seek to prevent his inauguration and put in its own 


man — who never had made even a pretence of seek- 
ing the suffrage of the electors — meant to precipitate, 
if not actual revolution, a condition fully as bad. It 
meant to destroy the confidence of foreign capital, and 
to take from Peru the prestige which she slowly was 
regaining among South American nations. It was 
inconceivable how a patriotic Peruvian could harbor 
a purpose of encouraging such a condition, and yet 

Senor A was intensely patriotic and ready to fight 

for his country. 

The election was held, and some of the hot-heads, 
among whom was Senor A- , did undertake to ques- 
tion the result, and for a brief period the fate of Peru 
trembled in the balance. It was settled by the stern 
displeasure of General Nicolas de Pierola, the former 
President, himself the chief actor in many revolutions 
and at that time the leader of the Popular Democratic 
party. He told his radical followers that insurrec- 
tion against the government would be treason to the 
nation, and Senor Candamo was inaugurated with his 

In this incident I do not mean to lose sight of the 
real significance, which was that patriotism did triumph, 

but it was in spite of Senor A and a group of highly 

educated Peruvians, like himself, who would have 
revolted if they could have been sure of enough fol- 
lowers. It showed that Peru's educated classes were 
not yet educated to the point where they alone could 
be trusted with the destinies of their country, but that 
the bulk of the population, this common clay, was 
acquiring a conservatism which insured the future. 
Let hard times come and there may be some dis- 
content among this mass, yet it will not be moulded 


to the ambitious purposes of selfish leaders so easily 
as formerly. The national policy on which Peru has 
entered is one that, by the material development which 
it promises and the industrial and agricultural pros- 
perity which its carrying out assures, is a guaranty, so 
far as administrative measures can be, against economic 
depression, and consequently of conservatism among 
the mass of the people. 

Another test came when, a few months after Presi- 
dent Candamo's inauguration, he was taken ill and 
in May, 1904, died. He had been conspicuously and 
honorably identified with the history of Peru, had the 
confidence of the whole people, and especially of 
the commercial classes both foreign and native. His 
programme had been purely a civilian one. All the 
political parties had been harmonized and were sup- 
porters of his administration. His death inevitably 
brought on a contest for the succession. In this 
struggle there was to be an alignment of political 
organizations. Again Peru was approaching a crisis 
which would test her stability, and show the world 
whether confidence could be placed that the progres- 
sive career on which she had entered would be un- 
interrupted by domestic dissensions. 

Under the Peruvian Constitution a first and a second 
vice-president are chosen, but the vice-president has 
not exactly similar functions to that official in the 
United States. The first vice-president, in the ab- 
sence of the president or his temporary retirement 
from official cares, discharges the responsibilities of 
the executive office, and in the absence or disabil- 
ity of the first vice-president the second one acts. 
But in the event of the death of the Executive, the 


vice-president fills the office only until an election can 
be called and a successor chosen. It happened in 1903 
that Senor Acorta, who was chosen first vice-president, 
died before the inauguration. On the death of Presi- 
dent Candamo, Senor Serapio Calderon, the second 
vice-president, discharged the executive functions and 
issued the call for the election of a new chief magis- 
trate. If the emergency had been pressing, he could 
have called the Congress in extra session. 

The administration between the death of President 
Candamo and the inauguration of his elected successor 
was in essence a provisional one. Judge Alberto 
Elmore was called from the Supreme Bench to become 
Minister of Foreign Affairs and president of the 
Council of State. By Peruvian law the nation can 
have the services of its jurists in political positions 
temporarily without the necessity of their leaving 
the bench permanently. I had known and esteemed 
Judge Elmore as a colleague in the Pan-American 
Conference in Mexico, and in common with other 
friends of Peru was reassured on reading the news 
that he would be at the head of the cabinet during 
the period of uncertainty that was to ensue. His 
firmness and equipoise were a pledge of public order, 
if not of complete tranquillity. Mr. Manuel Alvarez 
Calderon, the Peruvian minister in Washington, in 
announcing that the death of President Candamo 
would cause no halt in the progress of Peru, had 
spoken with the voice of authority. 

After some delay nominations were made by the 
opposing political parties. The Civilistas united on 
Senor Jose Pardo as their choice, and the Constitu- 
tionalists endorsed him, he becoming the candidate 


of this coalition. The Popular Democrats and a 
political group known as the Liberals named General 
Nicolas de Pierola, the former President, as their candi- 
date. His career in the stormy periods of Peruvian 
history for forty years had made him a leading char- 
acter and he had strong influence with the masses. 
On his retirement from the presidency he had become 
the head of a business enterprise in Lima. His old 
opponent, General Caceres, one of the Constitutional- 
ists, supported Senor Pardo. 

Jose Pardo is a member of a distinguished family, 
one of several brothers influential in the business and 
politics of the country, sons of the President who 
founded the Civil .party in 1872. He was educated 
for the law, and had been in the diplomatic service in 
Europe, but had returned to Peru and was occupied 
as a sugar-planter when Miguel Candamo was chosen 
President. He was one of Senor Candamo's active 
supporters, and entered the latter's cabinet as Min- 
ister of Foreign Affairs. He was generally recognized 
as the coming leader of the Civilistas, and was sur- 
rounded by a group of young men who were aggres- 
sive in their advocacy of civilian policies. His speech 
in accepting his party's nomination was singularly free 
from the generalities and the apostrophes to Liberty 
with which presidential candidates and dictators in the 
Spanish-American Republics are accustomed to season 
their discourses. Instead it was a plea for a school sys- 
tem, internal improvements, railways, irrigation, harbor 
works, fiscal reforms, and economical administration. 

General Pierola also made industrial measures the 
leading feature of his programme. 

The campaign caused anxiety, though the tension 

Portrait of Jose Pardo, President of Peru 


clearly was less than in the previous year in the pe- 
riod between Senor Candamo's election and his inau- 
guration. Demonstrations by the rival political groups 
resulted in bad blood, there were collisions with the 
police in which several persons were killed or injured, 
and election riots after the manner of some sections 
of the United States. But these incidents were not 
numerous enough to show the existence of a revolu- 
tionary spirit, and they were dismissed with the euphe- 
mistic designation of " electoral effervescences/ ' 

Meanwhile the real electoral contest was going on 
in the newspapers, in meetings, and by manifestoes 
and addresses to the public. It soon became evident 
that the Civil party with Senor Pardo as its leader 
would triumph. The Pierolistas asked the govern- 
ment for a postponement of the election. This was 
refused on the ground that under the laws and the 
Constitution no authority existed for such postpone- 
ment. Then the Pierola ticket was withdrawn by the 
Popular Democrats and the Liberals, and their fol- 
lowers were advised not to vote. This action was a 
resort to the minority method practised in Spain and 
her offshoot countries in America. It is an admission 
in advance that the other party will win. 

After General Pierola's withdrawal the Civilistas 
and their allies exerted themselves against what in the 
United States is called apathy. To comply with the 
law and make the election valid, it was necessary to 
have one-third of the registered vote cast. The pro- 
portion of the ballots was much larger than that. 
Senor Pardo was elected in August and inaugurated 
in September. He formed his cabinet with young 
blood tempered by experience. Senor Leguia, who as 


his colleague in President Candamo's cabinet had been 
Secretary of the Treasury and had been the warm ad- 
vocate of the new industrial policy, was called to the 
Treasury again and became president of the cabinet. 
Other members of the cabinet selected also had the 
confidence of the public. The continuance of civil 
administration and the dominance of civilian measures 
were reaffirmed, and it was shown that Peru had taken 
another stride toward stability by the acquiescence of 
the defeated party. The opposition made no effort to 
question the election. 

Peru's growth in genuine popular institutions and 
the recognition of public sentiment has been shown 
in the caution with which the executive power has 
been exercised by the presidents during the last 
twelve or fifteen years. There has been little of 
the dictator either in disguise or in proper person. 
Under President Pardo representative government is 
certain to make further progress. 

I have given the substance and the spirit of the 
government of Peru as it exists to-day, leaving only 
brief space for an analysis of the form. The Consti- 
tution now in force was adopted in i860 and was 
modelled after that of the United States. Power is 
centralized, though there is a reasonable measure of 
local self-government or local administration. Geo- 
graphical isolation of the different sections is one cause 
of the centralized authority. The political division of 
the Republic is into 21 departments, which are sub- 
divided into 97 provinces, and these into 778 districts. 
The source of administrative authority in each depart- 
ment is the prefect, who is named by the central gov- 
ernment. In many of the departments the prefect is 


an officer of the regular army. Each of the provinces 
has a sub-prefect, and the districts have their local 
rulers or governors, depending from the higher power. 
In the municipalities the alcalde is appointed, but the 
members of the Council are elected. The Amazon 
Province of Loreto has a system of administration 
somewhat different from the other departments. It 
is more under military administration. The customs 
administration at Iquitos also requires a close super- 
vision by the national authorities. 

The powers of the Executive are defined with clear- 
ness. They are complete, though there is something 
of a limitation in the Council of State and the cabinet. 
Members of the cabinet occupy a position midway 
between constitutional advisers and clerks of the Ex- 
ecutive. The Council of State, which was created by 
law in 1896, is in some respects an executive body. 
When the cabinet is in full sympathy with the Presi- 
dent, the Council of State is his instrument. But 
when this body is made up of warring political ele- 
ments, the President is not always able to have his 
way. The system obtains of having the various po- 
litical groups represented, and when there is a hostile 
majority in the Congress that is the only means by 
which the government can be carried on. Frequently 
it results in an administration of cross purposes. The 
cabinet members may be also members of the Con- 
gress, and may be summoned before either branch 
of that body to give explanations and may take part 
in the debates. The Peruvian Congress is peculiar in 
one respect. This is in the election of suplentes, or 
deputy representatives and deputy senators. When 
the election is held, it is both for members and for 


deputy members. Thus it happens that the Congress 
never need be without a quorum in either branch, and 
no district or department need be deprived of repre- 
sentation temporarily by the death or absence of the 
senator or representative. His deputy can be counted 
on to attend the sessions. 

The Church is a part of the state in Peru, and has 
been usually an unprogressive part. The ecclesiastical 
organization consists of an archbishop, resident in 
Lima, and eight suffragan bishops for the various 
dioceses. The Church as an institution has opposed 
movements to liberalize Peru, and has instigated revo- 
lutions against reforms. 

Roman Catholicism is intrenched in the Constitution, 
not only as the religion of the state, but by the pro- 
hibition of other forms of worship. The Protestant 
congregations are not numerous, and it is still neces- 
sary to call their places of worship halls instead of 
churches. Yet under liberal administrations no real 
difficulty is experienced by the missionaries who tem- 
per good sense with zeal. In remote districts the 
central government cannot always insure protection 
against local prejudices, but its authority is exerted to 
that end. The testimony of the missionaries them- 
selves is that they are meeting fewer and fewer diffi- 
culties, and even in the strongholds of intolerance, 
such as Cuzco and Arequipa, they are able to carry 
on their proselyting labors without interference. 

In the passing of years the Constitution of Peru 
will be amended so as to welcome Protestantism, 
though the Roman Catholic Church will remain the 
state church. This constitutional amendment is some- 
what cumbersome, since it requires consecutive action 


by two Congresses in order to become effective ; 
but the sentiment in favor of it is spreading and 
propositions already have been presented to Congress. 
Wise Protestants do not believe in urging it too 
rapidly. They realize that, with a succession of liberal 
governments and with the toleration that already is 
manifest, Protestantism can afford to wait and work. 

The provisions of the Peruvian Constitution and 
the laws with regard to foreigners are liberal. For- 
eigners may be naturalized after two years' residence. 
The government at Lima through the prefects ex- 
tends every possible protection to those who are 
travelling or who seek to engage in mining or other 
industries. The trouble which arises generally is with 
the local authorities, and Europeans or Americans who 
have a reasonable degree of tact and are willing to 
adapt themselves to their surroundings usually can 
make themselves personas gratas. Where they start 
in with the disposition to flaunt their foreign citizen- 
ship and to override the natives, not even the central 
authority can prevent local antagonisms. In four 
cases out of five the foreigner in Peru who gets into 
trouble with the local authorities has only himself to 

The government in the laws it has promulgated for 
the mining industry, for the exploitation of the rubber 
forests, for irrigation, and for the navigation of the 
waterways has sought especially to protect and en- 
courage foreign capital and individuals. Foreigners 
may be members of the deputations or delegations 
which are provided in the mining-code, and they also 
may serve in the municipal councils. On the alder- 
manic ticket at Cuzco and other places I found English 


and German names, and was told that these candi- 
dates had not been naturalized and had no intention 
of being. This provision should be of particular 
value in colonization movements where communities 
may be established without the native Peruvians. 

In relation to income and outgo there are three 
sources of revenue, — general, municipal, and depart- 
mental. The general revenues are had from the cus- 
toms import and export duties, from the stamp tax, 
and from the internal revenues on tobacco, alcohol, 
sugar, matches, and similar articles of consumption. 
Salt is a natural monopoly. The departmental rev- 
enues are from the land tax (which is very light), 
from the imposts on property transfers, from the in- 
heritance tax, and from a variety of industrial sources. 
The municipal taxes are obtained from local tolls, li- 
censes, surveys, and like means. They are not heavy. 

Somewhat curiously in this age, the collection of the 
internal taxes is farmed out by the national govern- 
ment. A joint-stock company known as the National 
Tax Collection Society, Compania Nacional de Recau- 
dacion, by an agreement with the government collects 
all these revenues and turns them in, retaining its per- 
centage and providing loans when needed for current 
purposes. The stock of this company was taken 
mainly by the Lima Chamber of Commerce. There 
is also in Lima a provincial tax collection association, 
which takes charge of the local revenues in the same 
manner that the national company collects the general 
revenues. Contrary to what might be supposed, this 
system works very well, and is satisfactory to the tax- 
payers, while the government gets a larger return than 
if it itself were the collector. 


Peru is almost exceptional among the South Ameri- 
can Republics for establishing and maintaining the 
gold standard. This is a brilliant and instructive 
chapter of financial history. The beginning was 
made in 1897, following the presidential election in 
the United States. General Pierola was President 
and was strongly in favor of the gold basis. Though 
Peru was a silver-producing country, a law was passed 
providing that gold should be the sole standard, that 
the customs duties should be thus paid, that there 
should be no further silver coinage, and that the ratio 
should be ten soles of silver, equal to the English 
pound sterling, or the Peruvian pound sterling, which 
is the exact equivalent in weight and fineness of the 
English pound and is known as the inca. It also 
was provided that silver should not be legal tender in 
amounts greater than $100, that no person should be 
permitted to bring more than ttn soles into the coun- 
try, and that the export duties on silver should be 

Subsequent legislation strengthened this law, and the 
government by an arrangement with the banks called 
in and melted into bullion the redundant soles, itself 
taking the loss. There was opposition, especially in 
the Cerro de Pasco mining-region, where the output 
of silver was greatest. In the interior also the Indi- 
ans, who had been accustomed to silver, could not be 
made to understand gold. But as they have few 
transactions in which a yellow coin is necessary, this 
was not a serious drawback. Silver enough remains 
in circulation, and at Arequipa and other interior 
commercial points gold yet can be had only by pay- 
ing a slight premium. In the natural processes of com- 



merce a considerable quantity of the minted gold of 
other countries is imported, the amount having reached 
$1,900,000 in 1903. No question exists that Peru's 
gold standard has been immensely beneficial in main- 
taining the credit of the country abroad and in facili- 
tating commerce at home. 

Paper money, either bank emissions or national 
notes, is prohibited by the law of 1879. The cur " 
rency which was in circulation in 1881 was converted 
into the internal debt. This internal debt grew out 
of the calling in of the paper currency and the liqui- 
dation of old accounts. The total is approximately 
$1 5,000,000. A small yearly disbursement is required 
for its service. Part of this so-called internal debt earns 
1 per cent yearly interest, and the remainder receives 
no interest, being provided for out of a redemption 
fund which amounts to $125,000 annually. The 
liquidation has been regularly carried on since the 
bonds were issued under the terms of the law of 
1888. The yearly fund appropriated for interest and 
the sinking fund remain stationary unless increased by 

In the ten years following 1895 the banking capi- 
tal of Peru increased at the rate of 150 per cent, 
while the deposit accounts ran up from $4,500,000 
to $14,000,000. The banks pay dividends of 14 to 
16 per cent. Volumes might be written about the 
causes which are leading to the commercial and indus- 
trial prosperity of the country and contributing to the 
political stability. The convincing evidence of the 
fact is the growth in the bank deposits. 

In the chapters on Peru I have sought to show 
something of the country and the people, of the re- 


sources and the commerce, of the economic prospects 
and the political conditions, for all of them must be 
known if the country's future is to be judged. What 
the joining of the Amazon to the Pacific means, what 
the new industrial life promises, what the govern- 
mental stability signifies, may find an answer in what 
has been written, for I believe in the destiny of Peru, 
but not an iridescent, dazzling destiny to be realized 
within a twelvemonth or a decade. Instead, a gradual 
growth to be attained by a plodding policy, sympa- 
thetic to the popular aspirations yet rock-rooted in 
sound principles of national progress. The Panama 
Canal helps to develop the Amazon section of Pe- 
ruvian territory, vivifies industries, and strengthens 
already stable governments by contributing to their 
commercial prosperity. Its impression on Peru is 
deep and lasting, for under its beneficent influence the 
seeds of revolution will cease to germinate. 



Arica the Emerald Gem of the West Coast — Memorable Earth- 
quake History — A Future Emporium of Commerce for the 
Canal — Iquique the Nitrate Port — Value of the Trade — 
Antofagasta y s Copper Exports — Caldera and the Trans- 
Andine Railway to Argentina — Valparaiso' s Preeminence 
among Pacific Ports — Extensive Shipping and Execrable 
Harbor — Plans for Improvement — No Fear of Loss from the 
Interoceanic Waterway — Coal and Copper at Lota - — Con- 
cepcion and Other Towns — Rough Passage into the Straits — 
Cape Pillar — Punta Arenas, the Southernmost Town of the 
World — Trade and Future. 

THE emerald gem of the West Coast is Arica, a 
day's voyage from Mollendo. After days and 
weeks of rocky coast without vegetation and of the 
long chain of the naked Andes farther inland, the 
clumps of green trees and the bushy fringe of verdure 
along the sandy beach are a seeming paradise and a 
close one too. The huge cliffs which beetle over 
Arica do not appear so barren as those farther north, 
and the flat-topped hills do not limit the vision so en- 
tirely as to shut out the thread of valley which marks 
the line of the railway back to Tacna and the desert. 
On the highest hill is a great cross, but down on the 
level are ancient and modern windmills. The train is 
slowly puffing its way across the plain, while the bay 
is filled with rowboats and small launches. In all it 
is a charming, reposeful sight. The island fort .at the 


base of the cliffs is rugged and stern, but it does not 
spoil the picture. 

Ashore are a handsome little plaza with an elliptical 
enclosed plot of shrubbery in the centre, blue morning- 
glories and purple vine trees. Lieutenant 'Commander 
de Faramond, the French naval officer who went 
ashore with me, stopped to look at the flowers a 
moment. "Aha!" he remarked, "they have the 
fever here. This is the purple fever flower of Algiers. 
Wherever it grows you find sickness." Later I made 
inquiries and learned that he was correct. Arica, 
while a most charming spot, is peculiarly subject to 
malarial influences. 

But a walk through the town deepens the pleasing 
impression. There is a well-built custom house, the 
sloping cobble-paved streets are clean, and the dwell- 
ings are very attractive. The latter are neat one-story 
structures. Some are blue as to exterior, some sub- 
dued green, others brown or orange, — a real prismatic 
blending. Most of them have arbor-arched entrances, 
and the passing view of the interior is delightful. The 
church is the biggest building, and at a distance it is 
not unattractive, though it does not improve archi- 
tecturally on near approach. Glimpses of native life 
are afforded by the Indian women coming in from 
the country. Some of them are mounted astride their 
donkeys, while the panniers, or baskets which contain 
their merchandise, almost smother them. Others 
trudge along by the sides of their animals. The 
buildings in Arica are of galvanized or corrugated 
iron. They are of one story, so that they will not be 
shaken down by the earthquakes. 

Arica's history has been a memorable one. Sir 


Francis Drake and his sea-hawks from the Golden 
Hind ^ho touched there in 1579, found a collection 
of a score of Indian huts. The earthquake record 
begins in 1605. The most celebrated of these convul- 
sions of Nature was that of 1868, when the United 
States frigate IVateree was carried a mile inland by the 
tidal wave, and left there to become the dwelling of 
a number of Indian families, until another earthquake 
and tidal wave drew it back toward the beach with- 
out harm to the inmates. The companion ship, the 
Fredonia was destroyed. 

Commerce passes through Arica chiefly for Bolivia. 
Mules and burros transport the freight from the rail- 
way terminus at Tacna into the interior. The imports 
are mining-supplies and miscellaneous merchandise. 
The exports are saltpetre, salt, sulphur, and some 
minerals. There is a shop on shore in which are sold 
the noted vicuna rugs. These are brought down from 
Bolivia. The skins of the guanaco, much coarser, are 
vended to unwary buyers for vicunas. For several 
years the annual commerce of the port at the maximum 
was f 1,000,000, but it will grow rapidly. 

The railroad from Arica to Tacna is of the stand- 
ard gauge and 39 miles long. It was among the first 
constructed in South America, the concession hav- 
ing been granted by the Peruvian government in 
1 85 1 and the line completed six years later. The 
aspiration then was to continue it over the pampas 
along the route followed by the ancient highway of 
the Incas and across the igneous Cordillera of Tacora 
to La Paz in Bolivia. A waiting of half a century 
was necessary before the project could be considered 
as tangible, but by the terms of the treaty negotiated 





between the Bolivian and the Chilean governments 
in October, 1904, it approached realization. The 
distance from Tacna to La Paz is about 300 miles, 
but the Corocoro copper mines, which will furnish 
much of the traffic, are 60 miles nearer to Tacna. 
The freight carried over this route by pack animals 
— mules, burros, and llamas — of recent years has not 
exceeded 20,000 tons annually, but in the earlier years 
the quantity was much larger. 

When the railway from Tacna to Corocoro and La 
Paz is completed, the commercial importance of Arica 
as a West Coast seaport will be greatly enhanced. 
This railroad will be an artery of commerce which 
will bring the heart of Bolivia to the Pacific, for it will 
lead to and from the most populous and most pro- 
ductive regions of that country by the shortest and 
most direct route. The line will be finished long be- 
fore the Panama Canal is opened, but the result will 
be the same. Arica is 2,200 miles from Panama, rela- 
tively 4,200 miles from New York, and less than 3,600 
miles from New Orleans. To New York around Cape 
Horn and Pernambuco is approximately 9,500 miles. 
From Arica to Liverpool via Panama is 6,900 
miles; by way of the Straits of Magellan is 10,400 
miles. Can a doubt be entertained as to the course 
of the commerce which will flow without ebb through 
the future great port of Arica ? 

The afternoon on which we left Arica we had a 
rare privilege. It was the sunlit view of the snow- 
cap of the distant Mt. Tacora in Bolivia. The sum- 
mit is 19,000 feet above sea-level. Though the other 
snow-ridges often are seen, Tacora rarely shows her 
ghostly face. In the late afternoon the azure mist 


gathered over the plain and lower mountain range ; 
the shadows fell on the shell-like hillsides ; the sun 
glistened on the chalky, beetling bowlders ; the brown 
cliffs became browner ; the faintest suggestion of 
twilight hovered for a moment ; the snow-caps dis- 
appeared, and it was night and we were steaming out 
of the bay. 

From Arica south the cliffs rise from the sea almost 
perpendicularly. In the morning Pisagua is sighted. 
This is a centre of the nitrate industry and of what 
remains of the guano traffic. Colonel North, the 
hotel-keeper who became the nitrate king, had his 
beginnings as a captain of industry here. The moun- 
tains come down to the sea in parallel ridges. Pisagua 
is like a little Pennsylvania mining-town, except that it 
seems likely to slide into the sea. A fearful visitation 
of fire and plague depopulated it in 1905. 

Double-header engines drawing short trains climb 
the steep walls as though they were going up a ladder. 
After a time they wind their way to the nitrate plains 
and then across the dreary desert to Iquique. There 
is not much to be seen on the railway route, and 
travellers prefer to keep the ship along the sheer cliffs 
till Iquique is sighted through the masts of the sailing- 
vessels which are clustered in the harbor waiting for their 
cargo. Sometimes a hundred of these are gathered. 

There is really no harbor, and scarcely what can be 
called docks, for the vessels must anchor outside and 
the rude breakwater is hardly more than a pretence. 
To get ashore the reef has to be crossed in a small 
boat. Upsets are frequent, and fatalities are not un- 

Iquique is a fragile city of frame and corrugated 


iron buildings. In the plaza are a reasonably tasteful 
monument and a pretty municipal building. There 
is a brown wooden church with a wooden effigy of the 
crucified Saviour, which is far from attractive to look at. 
The town has a population of 40,000. Iquique has a 
history which surpasses that of the bonanza mountain 
towns of the West in swiftness, for in the first days of 
the saltpetre riches nothing was allowed to be slow. 
It is more staid and sedate now, but the Englishmen 
— younger sons and some of the earlier generation — 
do not let life become too dull. They are terrific 
brandy and whiskey drinkers, showing a nice discrimi- 
nation in not exhausting the wealth of the nitrate 
beds by taking too much soda with their brandy. 
There is a Country Club and a convenient cafe at 
Camache, just out of the town proper. An American 
missionary school is maintained by the Methodist 
Episcopal denomination. When I was in Iquique, 
besides the school instructors there were only two 
Americans. One was a mining prospector, and the 
other was waiting for something to turn up. But 
North American enterprise was threatening to invade 
the nitrate industry. 

The municipal administration of Iquique under the 
Chilean authorities is excellent; that is the common 
testimony of all foreigners. The population which 
has to be dealt with is a rough and ready one ; the 
nitrate laborers are like the miners in their rude inde- 
pendence, and the longshoremen and harbor workers 
are as burly and aggressive as the same class in the 
United States. 

In commercial importance Iquique ranks with the 
leading ports of the Pacific, all due to the nitrate 


trade. Its saltpetre shipments about equal those of 
all the other coast towns, and are valued at from 
$28,000,000 to $30,000,000 annually. In a single 
year the ships entering the port, many of them sailing- 
vessels, aggregate from 850 to 1,200, with a tonnage 
varying from 1,250,000 to 1,800,000. As the nitrate 
beds are being worked on a more extensive scale, it 
is safe to assume that almost any given year in the 
future will disclose the presence of not fewer than 
1,200 vessels in the roadstead. Since the industry is 
largely in British hands, the English flag is by far the 
most common, though the German ensign is seen with 
growing frequency. 

It is not probable that the Panama Canal will have 
a marked influence, either beneficial or detrimental, on 
Iquique. What nitrate freight may exist by the time 
the waterway is ready for traffic will be governed by 
the conditions that obtain to-day. The saltpetre fer- 
tilizers form a bulky cargo. Part of the profits of the 
ocean carrying-trade lies in transporting coal from 
Australia or Newcastle to the Chilean coast and then 
taking on the nitrates. That brought from England 
scarcely would find it profitable to pay the Canal tolls. 
Nor would the distance be shortened sufficiently to 
secure an advantage for the nitrates as return cargo. 
Their ocean route, in the future as in the past, is 
through the Straits of Magellan or around Cape Horn, 
and Iquique remains an unimpaired port so long as 
the nitrate beds are unexhausted. Some shipments 
may be through the waterway direct to Charleston, 
to mix with the phosphates and thus fertilize the 
Southern cotton fields. 

At various times projects have been agitated for 


extending the nitrate railways in a manner to form a 
through line into Bolivia, but the preference given by 
the Chilean government to the Arica route seems to 
end the probability of such an enterprise. In view of 
the raw materials right at hand, it is surprising that 
neither native nor foreign capital has established 
manufactories of explosives. 

Twenty-four hundred miles from Panama, geograph- 
ically on the Tropic of Capricorn, is Antofagasta, a fair 
sort of town, with regular streets, rectangular ware- 
houses, and a graveyard on the hillside. Its pride is the 
plaza, which has been coaxed from unwilling Nature 
and made to bear evidences of grass and trees. It is 
the starting-point of the two-foot six-inch gauge railway 
which runs 575 miles up into the interior of Bolivia, 
and brings the mining products down to the shore. 
The railway pays a 6 per cent annual dividend, and 
is said to earn more. The gross receipts are about 
$9,000,000 per year. Antofagasta is a shipping-point 
for the nitrates as well as for bullion and ores. The 
nitrate shipments are increasing rapidly, and promise 
to rival Iquique. The harbor is a wretched roadstead. 
To get ashore it is necessary to brave a lashing, dan- 
gerous surf. The Chilean government is promising 
extensive improvements. They are badly needed. 
When made, they will enhance the commercial impor- 
tance of Antofagasta. The foreign vessels entering 
and clearing annually have a tonnage of 1,000,000. 

Antofagasta is the centre of the chief copper- 
producing district of northern Chile, and also it is the 
outlet of Bolivian tin, silver, and copper. The reduc- 
tion works built by the Huanchaca Company of Bo- 
livia are located near here, and a large quantity of the 


ores are transported to these works to be treated. It 
always will be their outlet, but in the future Antofa- 
gasta will have sharper competition than at present 
with Arica and Mollendo, as the shipping-port of 
Bolivian products. The Canal will be of some bene- 
fit in lessening ocean freights, more particularly for 
the general merchandise imported. 

Below Antofagasta is Taltal, a passably well-sheltered 
nitrate shipping-port. Then the coast toward Chana- 
ral begins to vary ; the mountains are lower, more 
broken and jagged, with more cross ranges. Chafiaral 
has copper-smelting works. 

Caldera is a small town, with substantial warehouses, 
fronting on a big, fine bay. It has a Panama potency, 
for it is the beginning of the Copiapo Railway that in 
time will cross the Andes and make the plains of north- 
western Argentina tributary to the Pacific. This trans- 
Andine route was the dream of William Wheelright, 
the Yankee pioneer railroader of Chile and the Argen- 
tine Republic, often called the father of public works 
in South America. The passes are low and easily 
traversed, as compared.with those farther south. The 
gradual extension of population in the northwestern 
provinces of Argentina, the increase in the areas 
under cultivation, are followed — or, better said, are 
preceded — by railroad extensions. A few years will 
bring her lines to the boundary of the Andes. In 
the meantime the Chilean government is encouraging 
the prolongation of the railway from Copiapo to the 
dividing line of the Cordilleras. The time cannot be 
far distant when Tucuman, the railway cross-roads of 
northern Argentina, will have rail communication with 
the West Coast at Caldera, and an extensive district 


will be weighing the comparative advantages of the 
Atlantic transport and the Pacific and Panama trans- 
port for its agricultural products and the merchandise 
brought to the people who grow those products for 

Coquimbo is a port of considerable importance. 
From the sea it is attractive. One main street extends 
along the water front, while the others branch off up 
the hill at right angles. There is the cemetery, some- 
what suggestively prominent. A neat frame dwelling 
in the seaside, peak-roofed style, hollowed out of the 
hillside, and surrounded by needle-pointed pine trees, 
secures attention. Coquimbo ships large quantities of 
manganese and copper, and formerly a British coaling- 
station was maintained. 

We arrived in Valparaiso one morning late in May. 
The American woman whose home it was, had prom- 
ised we should see another Bay of Naples. The fogs 
lifted slowly. They showed apparently a city afloat, 
for the vessel masts were first visible and then the port 
proper, which seemed to lie flat to the sea. Later the 
skies were sapphire, yet it was not Naples. That 
morning there was a celebration in honor of the arri- 
val of the Brazilian warship Almirante Barroso, and the 
bay was alive with small craft and stately ships, while 
the people swarmed over the heights and along the 
shore like ants. 

Valparaiso (vale of Paradise) is the largest place on 
the Pacific coast, with the exception of San Francisco, 
and it is equally as fine a metropolis. Its population 
is 140,000. The city lies at the foot of high hills, 
which no one climbs because there are ascensors, or 
elevators, as in Pittsburg and Quebec. Unhappily it 


has not a golden gate and a sheltered harbor. The 
finest part of the city is the Avenida, or Avenue Brazil, 
at once shaded boulevard, business thoroughfare, and 

The city has many fine business blocks of modern 
construction, and the government buildings are unusu- 
ally tasteful and harmonious. All bear the impress 
of Italian architecture. The commemorative spirit 
finds expression in a group celebrating the heroism of 
Arturo Prat, the young naval commander who gained 
unfading laurels in the war with Peru. On the Avenue 
Brazil is a bust of William Wheelright, the son of 
Massachusetts, who provided steam navigation as well 
as built railways for Chile. There is also a statue to 
Lord Cochrane, the Scotchman who took command 
of the Chilean fleet in the contest for freedom from 
Spain and helped to bring victory. It cannot be said 
that Chile is unmindful of the strangers who have 
served her, whether in arms or in peaceful progress. 

The port, as is natural, is cosmopolitan. The 
German colony is largest, and after that the Italians in 
numbers, though in influence they are hardly so strong 
as either the English or the French. The French 
community is self-contained and is an important factor 
in commerce. The Britishers, chiefly from Scotland, 
are in everything except retail trade. Though the 
English language is common, Valparaiso is the one 
city in South America in which I heard German 
spoken oftener. 

The shipping of Valparaiso is vast and varied, a 
floating panorama of many nations, like a miniature 
Hamburg. The English lines maintain a regular 
fortnightly service of cargo and passenger vessels, and 


also a special service of cargo vessels to Liverpool. 
The steamers are of 5,000 tons and upward. The 
distance to Liverpool by way of the Straits is 9,500 to 
9,800 miles, and the sailing schedule is 35 days. The 
vessels touch alternately at the Falkland Islands, 
both for mail and for the cargo of wool. They coal 
at Montevideo, Rio Janeiro, and in the Madeiras. 
They bring out to Valparaiso general merchandise, 
and they take away products of the country. 

The Bay of Valparaiso is a discouraging one. It is 
surprising that so extensive a commerce can be handled 
with such poor facilities. The shipping approximates 
1,000,000 tons yearly. The engineering difficulties in 
the way of creating a real harbor are well understood, 
though not easily overcome. The rains wash the 
hills down into the sea, but the detritus, or silt, does 
not fill in what seems to be the bottomless bed of 
the ocean, so profound is it. There is no breakwater. 

At the beginning of every Winter season the ques- 
tion is raised, — what will be the harvest of disaster? 
It seems incredible that vessels of 3,000 tons could be 
lost in this bay, but that is what has happened. In 
May, 1903, voyaging down the coast in the Tucapel, 
we were told that the Arequipa of 3,000 tons burden 
was the next ship following us. She arrived two or 
three days later, and took on passengers and cargo for 
the return trip. One night a savage tempest arose, 
many of the smaller vessels were wrecked, and the 
Arequipa foundered and went down with the loss of a 
hundred lives. Two weeks later from my hotel 
window I watched the wild bay and waited three days 
for a chance to get off on the Oropesa, one of the big 
ships which run between Valparaiso and Liverpool. 


Smoke from the funnels showed that the large vessels 
were keeping steam up, and they frequently steamed 
out into the open to avoid the dangers of the harbor. 
This storm was a norther which came in a circular 
path from the south. The immense floating docks 
tossed about as if they were eggshells ; the buoys 
bobbed like dancing water-sprites ; the schooners 
plunged their noses into the angry breakers until the 
mastheads dipped ; again the masts and yardarms 
would be as a stripped forest in Winter bending before 
the blasts. And the wreckage of the hurricane of a 
fortnight earlier was still visible, — two big schooners 
driven hard against the rocks, their masts under 

In July, 1904, another destructive storm swept 
along the coast. The lower part of the city was com- 
pletely covered with mud and water, the sea-wall was 
destroyed, and the railroad badly damaged. The loss 
of life was not great, but the destruction of property 
was serious. 

In the period from 1823 to 1893 the shipping sta- 
tistics show the loss of 378 water-craft in the Bay of 
Valparaiso, of which 100 were rowing and sailing 
boats. The money value was incalculable. 

The Chilean government after many discourage- 
ments accepted the plans of Mr. Jacob Kraus, the 
Holland engineer, for conquering the difficulties which 
Nature had placed in the way of making Valparaiso 
Bay hospitable instead of hostile to the ships that 
bear the commerce of many seas. The estimated cost 
of the harbor improvement is $15,000,000 gold, 
though the initial provision was for $1 1,000,000. The 
scheme contemplates the construction of a series of 


sea-walls in the bay. The water is so deep that it is 
considered impracticable to build a single breakwater 
across the mouth of the harbor. It is believed that 
the several sea-walls constructed in the manner pro- 
posed will protect the vessels and the merchandise 
from the terrific seas which drive in during the storms 
of the Winter months. A dry dock is included in the 
proposition. The calculation is that the shipping of 
the port will be benefited annually to the extent 
of $1,250,000 and upward by the projected improve- 
ments. The Chilean Congress approved the Kraus 
plans at the Autumn session of 1904. 

These harbor improvements will lay some addi- 
tional charges on maritime commerce, but they can be 
borne in view of the increased security and the better 
facilities. If the Panama Canal were likely to impair 
the commercial prestige of Valparaiso, they would 
serve as a means of retaining it. Not improbably the 
Congress had this contingency in mind when sanction 
was given the government projects for making the 
dangerous bay a safe shelter. The only loss from 
vessels which will pass through the Canal instead of 
making the voyage through the Straits or around 
Cape Horn, touching at Chilean ports, will be in 
coaling them and providing other supplies. This is 
not an important factor in Valparaiso's trade. The 
imports and exports of the port are based on the 
products and the wants of the country. Its maritime 
movement, which is estimated at 3,000,000 tons annu- 
ally, is measured by the facilities provided for this 
foreign commerce. 

Trade with the United States grows regularly, and 
agricultural implements and mineral oils, which are 

r 3 


among the chief imports, will pay the Canal tolls and 
still have cheaper ocean transport from New York or 
New Orleans than down the Atlantic and up the 
Pacific. It is not an unreasonable assumption that 
for a proportionate share of the merchandise imported 
from Great Britain 9,500 miles' water carriage from 
Liverpool through the Straits of Magellan may be 
offset by 7,800 miles via Panama plus the Canal tolls 
and other commercial considerations. The same holds 
true of Hamburg and the trade with Germany. 

On two visits to Valparaiso I found that the ship- 
ping interests were not worrying over a dimly pro- 
spective loss of commerce through the construction of 
an isthmian waterway. Instead they were looking 
forward to it as an incentive to making the bay a gen- 
uine harbor, and as a stimulus to closer trade relations 
with the United States. That appears to be a sound 
interpretation of the economic relation of the Panama 
Canal to the port of Valparaiso. 

After leaving Valparaiso one feels the pertinence of 
the suggestion that far enough south the Pacific is not 
always pacific. The sea is not excessively rough, yet 
it heaves and rolls uncomfortably. The tops of the 
Cordilleras, covered with snow, are very clear in the 
bright sunlight. At Lota there are trees and Winter 
vegetation on the high hills. Lota and Coronel are 
really twin ports. They both lie alongside the great 
vein of coal and copper, and are coaling-stations for 
the vessels. Most of the steamers come down to Lota 
for the fuel which will be needed in returning to Pan- 
ama, while those passing through the Straits of Magel- 
lan or around Cape Horn take on enough to serve 
them to Montevideo. It crops out of the hillside and 


is mined in primitive and inexpensive manner. The 
copper mining is also primitive. 

Lota has a good bay, but hardly a harbor. The 
town is not a bad one. Its main street is well paved. 
It has an attractive plaza, a club, a shabby church, a 
fundicion y or copper-smelting works in which old pro- 
cesses are used, and pottery and brick factories. It is 
also noted for the coal tunnel under the sea. Until 
they were turned into a stock company, Lota and 
Coronel were the property of the Cousino family, and 
the company is still controlled by that family. The 
widow Cousino at one time was the richest woman in 
the world. Cousino Park at Lota is the pride of Chile. 
It is bizarre, and blends English and French landscape 
gardening with some original ideas of Nature improved 
and unimproved. There is a French chateau on the 
hill, and there are ravines, grottoes, fountains, statuary, 
artificial lakes, arbors, terraces, flower gardens, and a 
small zoo. A lighthouse in the corner commanding 
the sea has a history. It was brought from Paita in 
Peru as the spoil of war. 

Indian faces are numerous in Lota. They are 
the strongest type I have seen, and are of the uncon- 
querable Araucanian stock. These Indians and half- 
Indians, besides being engaged in fishing and water 
traffic, are mingled with Europeans as mine-workers. 
It is a half-savage mining population, among which 
strikes, bloodshed, and murder are not unknown. 

For those who wish to visit the Chilean Annapolis, 
the train may be taken from Coronel to Concepcion, 
and then to Talcahuano, which is the naval port. The 
journey does not occupy more than an hour. The 
Chileans have a patriotic pride in this naval school. 


Talcahuano is a principal port and has much shipping. 
It is about the only good harbor on the Chilean coast. 

Concepcion, after Santiago and Valparaiso, is the 
largest city in Chile, and has a decided importance as 
the outlet for the great central valley. Many passen- 
gers come by the railway from Santiago through the 
central valley to Concepcion, and take the ship at 
either embarkation. The English and the Germans 
divide the foreign trade, which is large and profitable. 

Continuing down the coast on a voyage on the 
Oropesa, we passed the briefest day of the year, 
June 21, out of sight of land. The day was clear and 
cold. The seas were very heavy. At sunset the 
navigating officer told us we were in south latitude 
41 . The Milky Way never seemed so luminous, 
nor the evening star, set in the dark southern sky, 
so bright. The following day was alternate rain and 
shine, with just a sight of the Chiloe Archipelago 
through the mists. Few of the vessels now take the 
more picturesque route into the archipelago and 
through Smythe's Channel. The wrecks have be- 
come too common. 

Heavier seas were encountered in the afternoon and 
at night. What a night ! The Oropesa, a ship of 
7,000 tons, was pounded as with an anvil, tossed like 
a chip, knocked, hammered, slammed and banged 
about, chased by huge seas astern, struck obliquely 
by mountain waves, caught horizontally and spun 
around like a top. First she went at half speed and 
then at quarter speed, but with plenty of sea-room no 
one worried. 

The next morning at daybreak the lighthouse which 
marks the Evangelist Islands was sighted. The name, 


Islands of Direction, which is sometimes given them, 
is a better description. They fix the entrance into 
the Straits of Magellan. They are four rocky heaps, 
— Matthew, Mark, Luke, and John. After they are 
sighted the rough seas become gentler, and the ocean 
is like a rolling, gently swelling prairie. A knob of 
brown earth is seen. It is Cape Pillar. The gray 
clouds change into violet and purple, a blinding snow- 
storm of three hours follows ; then the sun lifts a little, 
and discloses on the right Desolation Islands and the 
great snow fields. By mid-day the land on either side 
is quite close. The channel does not appear to be 
more than a quarter of a mile across. There is some 
brush, but no trees. The blue glaciers of which we 
have read are not blue, but are white against the water- 
green sky. In the afternoon a gauze spreads over 
the glaciers like a veil of mist, and they are blue. 

A look astern shows that we are passing through 
the narrowing neck of a long channel with snowy 
crags and slopes on either side. We are in south 
latitude 54 , no twilight, a black night, not a star 
visible, the water not to be seen from the lower deck, 
the ship groping for anchorage like a blind fisherman. 
cc Two hundred sixty fathoms, no ; thirty-six fathoms, 
yes." We have conquered the treacherous currents, 
have turned the dangerous elbow corners, and learn 
that we anchor for the rest of this black night off 
Cape Coventry. I thought of Ferdinand Magellan and 
his sail-ships threading those unknown channels nearly 
four centuries ago. 

We are under way at four o'clock in the morning, and 
come out on deck to find the sun hooded and cloaked 
in the snow clouds. It clears later, showing the 


straits much broader and the hills on either side lower 
but still under a white mantle. We round Cape 
Froward, latitude 53 54', at times losing sight of 
Tierra del Fuego. We get a sight of Punta Arenas, 
the most southerly town on the American Continent 
or on any continent, 1,600 miles farther south than 
Cape Town, 900 miles nearer to the South Pole than 
Christ Church, New Zealand. It is the world's cross- 
roads for ocean travel. 

The first view is of wide streets running back to 
forest-clad hills which are almost lost in the snow 
clouds. Everything about the town is brisk and 
bright. Ashore the snow crunches under our feet, 
and we have the buoyant feeling of the Hudson's Bay 
trapper. There is a Chilean cruiser in the bay, and 
German, English, French, and Spanish ships. Even 
rarer is one bearing the American flag. There are 
hotels, gasthauses, posadas, and other signs which tell 
in many languages of sailors' lodging-houses. The 
mingling of many tongues is also heard, for the sailors 
are ashore. 

Punta Arenas has very good wharves and ware- 
houses, substantial bank buildings, some private resi- 
dences that look like Swiss chalets, and a somewhat 
pretentious plaza in which on this day the fountain 
has become a beautiful ice crystal. The town also 
has sailors' bar-rooms. There is a new church, and a 
few vacant lots are left in the business section. A 
troop of urchins come chattering from school, leap 
into the snow-drift, and pelt the passers-by, the uni- 
versal privilege of boyhood. Though it is Winter 
the women are bareheaded, or most of them are, and 
the black alpaca shawls thrown carelessly over their 

Scenes at the Straits of Magellan 
Cape Pillar — The Evangelist Islands — Cape Froward 


shoulders do not indicate that the cold is penetrating. 
The men wear vicuna robes like blankets, or many of 
them have the skins made up. into overcoats. The 
steamer has brought the fortnightly mail, and every 
one gathers at the post-office waiting for letters. The 
talk is of new sheep companies and gold washings in 
Tierra del Fuego. 

Punta Arenas has no custom house. It is a free 
port, — a very wise policy considering that its trade is 
of an international character, selling to the passing ships 
and buying from them only such articles as are needed 
for local consumption. The commercial movement 
reaches $ 2,2 50,000 per year, the exports exceeding the 
imports by $250,000. The export commerce is of 
wool, hides, tallow, ostrich feathers, foxskins, guanaco 
and vicuna rugs. The imports are alcohol for the 
Patagonian Indians, cereals, and general merchandise. 
The best fur store is kept by a Russian woman. The 
town is the seat of the territorial government of 
Magellans, and is the official residence of the Governor. 
There is also an army barracks and a weather bureau 
office. It is a station of the Chilean navy, which has 
rendered much service to navigation in the hydro- 
graphic work of the Straits. Punta Arenas has its daily 
newspaper, filled with shipping intelligence and con- 
taining cable news which is transmitted by land wire 
from Buenos Ay res. Wireless telegraphy finds it a 
convenient station. 

Punta Arenas thinks it has a cloud on its future. 
This is the Panama Canal. It now is an important 
coaling-station, the coal being brought both from 
Australia and from Newcastle, and it has a good 
business in supplying passing vessels. Some of this 


trade will be lost when the Hamburg and the New 
York ships which follow this route to San Francisco 
are able to take the shorter course through the water- 
way. But by that time the improvements which the 
Chilean government is making in the navigation of the 
Straits, and the natural development of trade in the far 
southern regions will have more than compensated for 
the diminution from the diversion of the through ocean 
traffic to other channels. As the centre of the sheep 
industry of Tierra del Fuego and of the Chilean main- 
land, the southernmost town has a stable future. 



Railway along Aconcagua River Valley — Project of Wheelright, 
the Yankee — Santiago's Craggy Height of Santa Lucia — A 
Walk along the Alameda — Historic and Other Statues — 
The Capital a Fanlike City — Public Edifices — Dwellings 
of the Poor — Impression of the People at the Celebration of 
Corpus Christi — Some Notes on the Climate — Habits and 
Customs ■ — " The Morning for Sleep " — Independence of 
Chilean Women — Sunday for Society — Fondness for Athletic 
Sports — Newspapers an Institution of the Country, 

IN places the river Aconcagua is like the Platte of 
Nebraska, which is famous for spreading out so 
that it is all bed and no depth. Yet the stream is 
more picturesque than the flat top of Mt. Aconcagua, 
22,425 feet high, for the monarch of the snow-covered 
Cordilleras lacks the majesty of the apex peaks, which 
are 2,000 or 3,000 feet lower. The railroad creeps 
along the valley from Valparaiso, cuts across the 
ravines and transverse spurs into a narrow pass, fol- 
lowing the watercourse and clinging to the mountain- 
side like the rim of a wheel. The vegetation is both 
temperate and tropical. In making the journey on 
a June day I passed from the balminess of perpetual 
Spring to the chill of Winter, but Nature was not stern 
and there was no bleakness. A little back from the 
seacoast were short and stocky palms, fields carpeted 
with yellow cowslips, milk-white nut trees, green wil- 
lows, silver poplars, young apple orchards side by 


side with orange groves, firs, and the taller forest 

After the main valley is left and the gorge entered, it 
is a steady, curved climb to Llai-Llai. The place is 
an eating-station, and a very good one too. The name 
is Indian and not Welsh. Though it was midwinter, 
the breath of the tropics lingered and the dews had 
freshened the vines and trees. The railway splits at 
this point, one branch going south to Santiago and 
another straight on to Los Andes, where the mule- 
path leads across the cumbre, or summit, but where 
in a few years the big spiral tunnel will complete 
the through rail connection via the Uspallata Pass 
between Valparaiso and Buenos Ayres. In this region 
I had glimpses of vineyards, of pretty farms, and of 
pasturing cattle and sheep. The valley below is an 
agricultural Arcadia. Coming out of the gorge in the 
wildest part, the beauties of the scenery were tempo- 
rarily lost, for a big, staring coffin sign greeted my eye. 
Sometimes the Chileans call themselves the English 
of South America; sometimes the Yankees. The 
advertiser's art here is both English and Yankee — it 
stops at nothing. 

But the snow-peaks, the overhanging vaporous 
milky masses on the summit, and the darker purple 
masses on the mountain-sides, make it possible to for- 
get the coffin man and his wares, though his sign at 
first jars the aesthetic sensibilities so disagreeably. 

Railroad travel is comfortable on the line from 
Valparaiso to the capital. There are Pullman cars 
and other conveniences. But though it is midwinter, 
the cars are not heated. Every one unrolls blankets 
and robes. The women settle back to a nap or a 


little gossip. The men light their cigars, and between 
the intervals of newspaper reading, talk politics and 
the weather. Two or three peruse French novels. 
The five hours consumed in the journey pass quickly. 

This railroad was projected by William Wheel- 
right. The opposition the enterprise met in the 
Chilean Congress reads like a chapter of George 
Stephenson's struggles with the English Parliament. 
Wheelright carried the line as far as Llai-Llai. 
Then came a long wait, till Henry Meiggs arrived in 
the first flush of his exile, and with his extraordinary 
mental activities thirsting for a field for their employ- 
ment. For ten years the government had been de- 
ciding to have the remaining sections of the railway 
completed cc to-morrow. " It was in 1861 that they 
made the contract. They had no idea of quick work. 
Meiggs, shrewd California Yankee, got a clause in- 
serted giving a premium if Section A should be fin- 
ished within one year instead of three years, and so 
forth. Then he built the railroad in the shortest 
period and collected the largest premium. The au- 
thorities, wondering, paid, but allowed no rush clauses 
in subsequent contracts. 

Few big cities can boast the possession of a craggy 
mountain. Santiago has such a treasure in Santa 
Lucia, an alluvial outcropping, isolated, and appar- 
ently not kin to the granite spur of San Cristobal 
near by. After waiting many years, the municipality 
converted it from a sterile mass of rugged rock into 
a park with drives and gardens, serpentine paths, stat- 
ues, terraces, parapets, bowers, grottoes, basins, cas- 
cades, and aquariums. There is a statue to Pedro 
Valdivia, the first of the Spanish conquerors, whose 


conquering career was ended by the unconquerable 
Araucanians, and a chapel and monument to the 
public-spirited Archbishop Vicuna. A theatre, a cafe, 
and some other structures also have been erected. 
Their value in beautifying the mountain is not great, 
yet art and advertising have not been allowed alto- 
gether to spoil Nature. 

Santa Lucia is Santiago's crown jewel, her Kohi- 
noor. Every day during my stay I went to walk 
there, often through the clouds, but always with a 
freshened sense of enjoyment. The approach is like 
Chapultepec in the City of Mexico, but this isolated 
mountain mass, while less extensive, is more domi- 
nating than Mexico's pride. Though it does not 
afford the splendid sight of two volcanic snow-clad 
peaks, as Chapultepec does in the vista of Popo- 
catepetl and Ixtaccihuatl, yet the circular snow profile 
of the Andes through the violet mist is an always 
pleasing vision. 

A morning or an evening stroll along the Alameda 
de las Delicias — Delicious Walk, in English — shows 
much of Chilean life. It is a shaded avenue with a 
central paseo, or walk, a roadway on either side be- 
tween rows of poplar trees, — the roadway being given 
over to the trolley cars, and then the main thorough- 
fares which form the street. There are some hand- 
some residences and many commonplace ones. The 
stores are not fine. The Alameda is too long (three 
miles) and too broad for trade, and the shopping dis- 
trict locates itself elsewhere. 

Chilean patriotism is rampant on the Alameda, 
though it is not always artistic. The avenue has 
statues to O'Higgins and other national heroes, with 


groups commemorative of incidents in the war for 
independence. A statue has been erected to the in- 
ternational hero, San Martin, the Argentine chieftain 
who led the allied armies of the patriots to victory 
against Spain. An unambitious monument to Buenos 
Ayres typifies the completion of the telegraph line 
between Chile and the Argentine Republic across the 
Andes in 1865. 

While many of the groups on the Alameda com- 
memorate war heroes and war incidents, peace also 
is recognized. There is a statue to Benjamin Victor 
MacKenna, the historian, with the inscription that 
the heroes thus pay tribute to the chronicler of their 
prowess. He was defeated for the Presidency by a 
soldier. I like even better the memorial to Father 
Molina, the Jesuit naturalist, who rendered distin- 
guished service to science. It is an obscure little 
statue, yet it shows that the warlike nation has 
thoughts of the sacrifices and the achievements of 
science as well as of arms. 

Santiago is an ancient capital, for when the Boston 
tea party was held, its population was larger than that 
of either Boston or Philadelphia. With its suburbs 
included, it numbers about 300,000 inhabitants. It 
was laid out by the old Spanish town-makers with the 
customary regularity of streets and plazas, but not in 
the usual checkerboard form. The Alameda and the 
Mapocho River form a triangle which encloses the 
most densely populated sections like a fan, so that 
the east and west streets are not parallel. Santa Lucia 
is at the vertex or the rivet. The fan opens from the 
Alameda, and spreads over Cousino Park, the race- 
track, and various public institutions. 


The principal square is the Plaza of Arms, one cor- 
ner of which is occupied by the Cathedral. Nothing 
about the Cathedral is especial, nor are the churches 
themselves particularly striking, for they are not me- 
dievally ecclesiastical. Some of them are Florentine. 
Santiago as a whole has less of the typical Spanish 
architectural appearance than any other large city in 
South America. The business blocks are substantial 
structures of two and three stories, with many arcades 
and portals. The private residences have fronts with 
many facades, and are quite ornate. The* patios, or 
courts, within are paved with variegated tiles. The 
glimpses of the fountains and of green trees and yel- 
low oranges afford a pleasing picture to the stranger. 
He longs to enter and be at home in these secluded 
orange groves, set, as they are, in the amphitheatre 
of the snow-covered Cordilleras. 

Some of the public edifices are comparatively new, 
while many are of the Spanish and colonial epoch. 
The Moneda, or Government Building, belongs to the 
latter class. It is rambling and old, with no exterior 
pretensions, but with many courts, circular balconies, 
and grilled windows. The President occupies a smaller 
house for his residence. The Congress building is new, 
and is of the architecture of the Renaissance. It is on 
the site of the Jesuit Church that was burned in 1863, 
— one of the world's holocausts, in which 2,300 per- 
sons lost their lives. In front of the Supreme Court 
building is a statue to Andre Bello, the author of 
the Chilean Civil Code and an eminent authority on 
international law. 

The National Library is housed in the old Congress 
hall. It has a very extensive collection of manuscript 


records of the Inquisition, brought from Lima, and 
of other rare historical documents, including the colo- 
nial archives. I visited the Library one afternoon, and 
was shown some of its treasures by Director Montt. 
But the atmosphere of secluded scholarship did not 
come upon me until in a remote recess I met the 
Orientalist of the institution, a priestly bookworm in 
his clerical sotana^ a skull-cap covering his tonsure, 
keen eyes peering from the spectacles across a large 
inquisitive nose, — altogether a striking figure of the 
recluse in the midst of the musty wisdom of the 

Some sections of the capital city are shabby. A 
walk in the poorer parts — and they cover much terri- 
tory — disclosed to me even more than shabbiness, 
grinding poverty. Across the Mapocho, the walled 
and bedded river, is a church with a gaudy blue front 
and a dreary triangular plaza. Penury stretches on 
all sides. The dwellings are low, with floors below 
the street level and in the cold and rainy season under 
water. The interiors are repulsively forbidding and 
unsanitary. The comforts of life, let alone the de- 
cencies, cannot be acquired in such squalid surround- 
ings. No subject of municipal legislation is more 
pressing than that of sanitary tenements, and no mu- 
nicipality has shown greater indifference to it here- 
tofore than Santiago. Until something is done in 
this direction, the palpitating social question will con- 
tinue to palpitate, and purely political issues will have 
to be decided under the scowl of the proletariat. 

The women conductors on the Santiago tramways 
have been often described. They are not many, and 
they are not all of them the loveliest of their sex, 


but they are faithful and obliging. They collect the 
fares about as rapidly as men would do. The motor- 
ists on the trolleys are men. 

A pleasing view of the poorer class of the popu- 
lation may be had on a national holiday or a Church 
celebration. I had it one day when the festival of 
Corpus Christi was commemorated. Both Church 
and State took part. In the Plaza de Armas were 
altars with burning candles. There were the troops 
in their gayest trappings ; the infantry in blue breeches 
with yellow stripes, wearing white plumes ; the cavalry 
with blue plumes, and the military bands with red 
plumes, — a gorgeous grouping of colors. It was a 
fine army showing, more imposing than the priestly 
conclave which, approaching from the adjoining streets, 
entered the plaza in front of the Cathedral. The 
parade was led by the Procession of the Cross, com- 
posed of various societies. Delegations from the dif- 
ferent parishes followed. Next came the religious 
communities, — the Franciscans, the Dominicans, the 
Capuchins, the Mercedarios, and the Augustinians. 
After them the parochial clergy brought up by the 
prebendary under the pallium, the archbishop being 
unable to occupy that place on account of illness. 
The pallium was preceded by the archbishop's cross, 
and was conducted by local notabilities. 

During the procession some of the women and 
many of the boys knelt in the streets and a few men 
doffed their hats, but the crowd as a whole was not 
devout and the ceremony was not impressive. It 
partook more of the nature of a perfunctory official 

Though the snow of the Cordilleras is always in 


sight, Santiago does not have a snow-storm oftener 
than once in ten years. But it rains. During June, 
early Winter, I saw clear skies on not more than half 
a dozen days. My Chilean friends told me this was 
exceptional, and to prove it they brought the verified 
weather statistics. These showed an average of only 
35 rainy days out of 365. The largest proportion was 
in August, when there were ten days on which rain 
fell. But the sky is overcast much oftener than this. 
There are very many days which are described by the 
expressive Spanish word triste, that gives to Nature 
the element of personality and means sombre and 
sorrowful. Besides, while the actual rainfall is not so 
great, there are seasons when the humidity is very dis- 
agreeable, and this is in Winter instead of in Summer. 
In January the relative humidity was 64.6, while in 
July (midwinter) it was 83.7. The average for the 
year was 73.29. The temperature is quite variable, 
and the difference between sun and shade is marked. 
In January the maximum in the shade was 68° Fah- 
renheit, and in the sun 85°. In July it was 46° in 
the shade and 57° in the sun. The mean average for 
the year was 69 . 

The Chilean of the upper class is as indifferent as 
he thinks the humbler class ought to be to mere phys- 
ical comfort. He resents the statement that not more 
than half a dozen dwellings in the capital have chimneys, 
and he is right in doing so, for that is a libellous 
exaggeration. Yet the majority of them are without 
chimneys, and their occupants get through the villa- 
nous Winter season with oil-stoves or perhaps even 
without this means of artificial warmth. I went an 
afternoon in midwinter to call on one of the local 



captains of industry. He had a handsome residence, 
and, happily, a parlor upholstered in warm colors. 
No other means of getting warm were provided. He 
came down to see me in his overcoat, and I had gained 
experience enough not to think of removing mine. 
" It is only a few months," is the smiling explanation 
of shivering through the Winter. But the means to 
provide comfort during those few months are coming. 
The wealthy citizen now builds his residence with 
chimneys and open grates. 

Life in Santiago — that is, social, professional, and 
business life — is only for the classes. The gulf be- 
tween comfort and poverty — - for it is simply comfort, 
since there are few great fortunes — is bridged by 
ignoring poverty. And it has to be confessed that, 
with wretchedness blinked out of sight, existence in the 
Chilean capital is agreeable. The city is both the 
heart and the pulse of the nation. The commercial 
habit — hardly industrial, for the factories are few — 
limits itself to an hour in the morning before breakfast 
and rather resents intrusion during that hour. Though 
he is at his office, the business man would rather have 
you come around after breakfast, since it spoils his mid- 
day meal to take up the work of the day before then. 
Some humorous experiences of my own, some polite 
postponements, satisfied me of the fixedness of this 
custom. In the afternoon there is real activity, con- 
centration which in a few hours makes up for apparent 
slackness. - 

In professional and official affairs it is the same. An 
official appointment or a call of any nature on a public 
functionary should be made somewhere between half- 
past two and half-past four. I discovered that the 



official urbanity was greatest if the call could be made 
between three and four o'clock. 

The social life is more of the clubs than of the 
home, yet there are many fine homes where a charm- 
ing hospitality is dispensed. The breakfast, prefer- 
ably on Sunday, is a favorite social function, begin- 
ning at mid-day and conducted with all the formality 
of an evening dinner. At a breakfast in the home 
of Mr. Emilio Bello Codecido, a colleague in the 
Pan-American Conference at Mexico, 1 met many 
of the leading people of Santiago, among them Mr. 
Auguste Matte, another colleague in that conference. 
Madame Bello is the daughter of former President 
Balmaceda. Again, Mr. Juan Walker Martinez, the 
brother of the Chilean minister in Washington, de- 
siring to give me an opportunity to meet some of 
the principal men of the city, arranged a breakfast 
at the Union Club. When given on week days, 
these social breakfast functions presuppose no press- 
ing business or professional engagements during the 

The Santiagonian is a night-hawk. His club life, 
and when he is not at the club his family life, does not 
begin till two or three hours after sundown. Every 
evening he is found at the Union Club, one of the best 
associations of gentlemen in South America. It may 
be that he is going to forego this practice for a few hours 
and accompany his wife and daughters to the opera or 
the ball, which celebrates some charity or a public func- 
tion. Female society is satisfied with these diversions 
and with church-going. At the opera it is resplendent 
in Parisian costumes. Charity draws all its members. 
At a charitable performance in the Municipal Theatre 


one night I was assured I saw all that was lovely in the 
capital — and very lovely it was. 

The Chilean women are less restricted by traditional 
Spanish formalities than their sex in other South Ameri- 
can countries. They shop by themselves, and many 
are employed in the stores and similar places, but man 
is the master, and the women take pleasure in recog- 
nizing this. They go to the ball or the opera to 
be admired, and the strangers admire and continue to 

The chivalry of the male Chilean, while formal and 
precise, is rather commonplace. He gives the lady the 
inner side of the street, and will politely describe the 
arc of a great circle and cheerfully step off into 
the sewer that his gallantry in this matter of etiquette 
may not be questioned. But this is the limit of his 
concession, except that if he be of a literary turn he 
may write sonnets to her black eyes. He extends the 
first greeting. Without it his most intimate female 
acquaintance must not manifest the faintest sign of 
recognition. This custom is intensely exasperating to 
the visitor, who finds the Chilean women look so much 
alike that he may have calmly ignored his vis-a-vis 
at a social function while he has greeted with effusive 
politeness a lady who makes it apparent, though not 
disagreeably, that she never saw him before. 

At the theatre the zarzuela, or one-act comedy, is as 
popular as in Spain. After the performance the clubs 
find all the men congregated there. The gambling is 
high. It has been said that the Chilean who forms a 
part in the social life of the country must be either 
a soldier, a priest, or a farmer. With the predomi- 
nance of the army and navy, the first class would be 


certain. The priest is less an element than formerly, 
but the farmer is the constant factor. The latter class 
includes the professional men, lawyers and doctors, and 
the business men, for all are landed proprietors. 

Sunday is the day for society, for drives to Cousino 
Park, and to the Quinta Normal or Agricultural Ex- 
periment Station, which is also a zoological garden. 
The grounds are extensive and well wooded with syca- 
mores and cypresses, but they impressed me as being 
badly neglected. Cousino Park also had the appear- 
ance of unkemptness. Chile long ago abolished the 
bull-fight, and she does not permit a national lottery, 
though there is no interference with the sale of tickets 
for the Buenos Ayres drawing. Football and other 
athletic sports are in high favor. Santiago in this 
respect is an English town. The great attraction is 
the racing, and on a Sunday afternoon in the season 
the Carrera, or Club Hipico, gathers all that is fashion- 
able and all that is animated. 

Though Santiago has a delightful Summer climate, — 
the thermometer never gets above 85 Fahrenheit, 
— every one who is anybody has a fundo, or country 
estate, to which the family flits at the first approach 
of the heated season. Later in November all move to 
the seashore resort of Vina del Mar, near Valparaiso, 
and play golf. 

The English group in Santiago is the largest of the 
foreign colonies, but it is not so extensive as the many 
English and Scotch names would lead one to suppose. 
These names are borne by Chileans whose great- 
grandfathers were from the British Isles, or a very few 
of whom were from the United States. 

Newspapers in Chile are as much an institution as 


in the United States. This is true both of Santiago 
and of Valparaiso. El Mer curio, " The Mercury," 
which is published in both cities, has fine buildings, 
superior in their conveniences to newspaper offices in 
the United States, and with provisions for editors, 
reporters, printers, and other employees that the Land 
of Journalism (I mean the United States) is a century 
behind in. Dining-rooms, private parlors, working- 
offices with baths, bedrooms, chess, for the working- 
staff of a daily newspaper ! The Santiago office of 
El Mercurio is notable not only for its own facilities, 
which are very complete, but for its salons and other 
rooms which are maintained for the benefit of the 
public. In a newspaper office in the United States 
the patron is lucky if he can get standing-room 
against any kind of counter or railing in order to 
write his advertisement. In Santiago he may have 
a table and chair and take his time. In consulting 
the files he has all the luxury of a modern library 
reading-room. The salons in the c< Mercury " build- 
ing are thrown open to the public for receptions and 
similar functions. One afternoon I attended by in- 
vitation a concert given by the members of the 
visiting Italian Opera Company in the music-room. 
Members of the Diplomatic Corps, public function- 
aries, and all that was distinguished in professional and 
social life in the capital were present by invitation of 
the newspaper management. 

The owner of El Mercurio, Mr. Augustin Edwards, 
is a young man. He is of the banking family of that 
name, is a member of the Congress, and has been 
Minister of Foreign Affairs. His journals publish 
more foreign and cable intelligence than any two 


















newspapers in any city of a quarter of a million in- 
habitants in the United States. 

While a large amount of telegraphic and local news 
is printed, the leader, or editorial on the foremost topic 
of the day, is a prominent feature of the daily issue, 
and one that carries great weight with the reading 
public. One evening at dinner, at the house of Mr. 
Alejandro Bertrand, the distinguished Chilean civil 
engineer, who was his country's expert commissioner 
in the boundary dispute with Argentina, the talk turned 
on the negro question. There are no blacks in Chile, 
and one of the guests, a man of prominence in finance 
and politics, who had lived much in Europe, confessed 
his perplexity over the negro issue, and wanted to 
know something about the African race. The clearest 
exposition that I ever heard of the life-work of Booker 
Washington, and the most discriminating explanation 
of the race problem in the United States, were given 
by Mr. Silva, the leader writer on El Mer curio. 
Though he had spent some years in England, he never 
had visited the United States, yet he was thoroughly 
conversant with our national perplexity. It therefore 
may be understood that the leading problems of the 
United States are discussed with intelligence in Chile, 
though Chilean subjects may not always receive the 
same treatment in the journals of the United States. 

Besides El Mercurio, Santiago has other vigorous 
papers. One of them is La Lei> " The Law." The 
name is misleading, for it is merely a daily journal 
devoted to current topics. It represents radical po- 
litical tendencies. Its editor, Mr. Phillips, was declared 
to me to be either feared or loved by every public man 
in Chile, and the alternations of fear and love were 



said to be as regular as the seasons. Here, then, was 
the ideal editor. In a call on Editor Phillips I was 
impressed with this feeling. His aggressive personality 
would be bound to make friends and enemies, and his 
independence in discussing public questions would be 
certain to insure ideal journalism. 



Extensive Use of Nitrates as Fertilizers — Enormous Contributions 
to Chilean Revenues — Resume of Export ations — Description 
of the Industry — How the Deposits Lie — Iodine a By- 
product — Stock of Saltpetre in Reserve — The Trust and 
Production — Estimates of Ultimate Exhaustion — A Third 
of a Century More of Prosperous Existence — Shipments not 
Affected by Panama Canal — Copper a Source of Wealth — 
Output in Northern Districts — Further Development — 
Coal — Silver Mines Productive in the Past — Prospect of 
Future Exploitation. 

IS nitrate of soda, the saltpetre of commerce, a 
national blessing or a national curse? 

After the war with Peru and Bolivia, by which Chile 
added to her territory 1,200 miles of seacoast, including 
the Bolivian Province of Antofagasta and the Peruvian 
Province of Tarapaca, a Chilean naval commander was 
credited with the foreboding prophecy that the nitrates 
would ruin Chile as they had ruined Peru. 

In its political phase the question may be answered 
according to the bias of the individual. It enters 
into the subjects concerning which Chileans engage in 
heated controversies when discussing policies and ten- 
dencies, or criticising government expenditures. But 
this aspect has no direct bearing on the naked eco- 
nomic facts of production and the addition to the 
nutritious substances of the world's soil. 


Nitrates are among the most extensively used fertil- 
izers known to agriculture, and the demand for them 
grows. Their relation to the fiscal system of Chile 
may be understood when it is known that from 85 to 
87 per cent of the total revenues is derived from the 
export tax on the saltpetre products. This impost is, 
in terms of English currency, at the rate of 28 pence 
per 46 kilograms or Spanish quintal of 101.4 pounds, 
relatively 55 cents for each 100 pounds. Their ratio 
of contribution to the national wealth is shown by an 
analysis for a given year, when the total value of the 
exports was $73,786,000 gold, of which $53,565,000 
was nitrates and the by-product of iodine, while the 
balance of $20,221,000 was composed of mineral and 
agricultural products and manufactured articles. In 
Chilean currency the figures were $202,153,000, of 
which the nitrates constituted $146,756,000. In the 
last quarter of a century the nitrate beds have yielded 
to the Chilean government $273,000,000 gold, and it 
is estimated that during the next twenty-five years, on 
the basis of the present export tax, the revenue will 
amount to $436,000,000. 

The first exportations were made in 1832. They 
continued on a small scale until the war in which Peru 
lost the Province of Tarapaca, and their exploitation 
on a large scale may be said to have begun in 1882 
under the Chilean administration. In that year the 
exportations amounted to 10,701,000 Spanish quintals. 
In the period inclusive from 1832 to 1904 the total 
reached the enormous sum of 602,438,000 quintals, 
or 61,087,213,200 pounds, equal to 27,271,077 long 
tons of 2,240 pounds. The personal histories of the 
individuals who engaged in the exploitation of the 


saltpetre deposits are as romantic as the experiences 
of the bonanza mining-kings. Nitrate kings have 
risen and thriven and have held their courts with 
titled courtiers in their train. Colossal fortunes have 
been made and plain commoners have become peers 
of England treading the golden path which was paved 
with saltpetre. 

So little is known about the nitrate industry that I 
venture to repeat the substance of a description which 
I found at once entertaining and instructive. 1 

The saltpetre or nitrate zone embraces the exten- 
sion comprehended between the Camarones in south 
latitude 19° 11' on the north and parallel 27° to the 
port of Caldera on the south, 450 miles in length. 
The distance which separates it from the coast varies. 
In the northern part the sea is only 15 miles away; 
in the South it is 93 miles distant. 

The deposits of saltpetre situated in the Province 
of Tarapaca occupy the small folds and the gently 
rising hills which extend from the west of the pampas 
of Tamarugal. To the south of the Loa River these 
deposits follow no lode, and they are met with in the 
midst of the great pampas as well as in the folds of 
some hills. But they extend always in a zone which 
runs to a distance varying from 37 to 93 miles from 
the coast. The short space that separates them from 
the sea makes easy the access to the neighboring ports 
by means of the railroads through the ravines which 
traverse the Cordillera of the coast. 

The saltpetre is found mixed with other substances 

1 For the facts here given I am indebted, through the courtesy of Min- 
ister Walker Martinez, to Mr. J. J. Campana, of Iquique ; but the opinions 
are my own. 


and forming an irregular layer, frequently broken up 
into barren parts, in which generally common salt dom- 
inates, or simply a conglomeration of clay, gravel, and 
sulphate of soda. 

The layer or covering which contains the nitrate is 
encountered at a very slight depth, covered by a fold 
of the conglomeration indicated, and which in general 
is altogether sterile, though in some parts, principally 
in the North, it contains a regular vein of nitrate. 

The vein of nitrate of soda in the layer which con- 
tains it is quite variable, the highest proportion being 
in the Province of Tarapaca, where in some points the 
medium quality amounts to 60 per cent. In the 
southern region this quality of caliche, or crude mate- 
rial, diminishes, and does not exceed an average of 30 
per cent. 

The name caliche is given to the raw material which 
contains the saltpetre that is found in the beds of 
deposits mixed with common salt, sulphate of soda, 
clay, and other foreign substances. The thickness of 
the layer is decidedly variable, and fluctuates between 
a few inches and three feet. Deposits of greater thick- 
ness exist, but these never have a great extension. 

The height above sea-level at which these deposits 
are met with varies from 3,600 to 13,000 feet. 

The layers composing a saltpetre deposit are : 

1st. Chuca, — This is formed by clay mixed with 
earth very fine and evenly spread. The thickness of 
the chuca generally does not exceed an inch and a 

2d. Costra. — This layer, which forms the imme- 
diate covering for the caliche, has a thickness fluctuat- 
ing between four-fifths of an inch and several feet. 


3d. Caliche. — This is the layer which contains the 
saltpetre, and its thickness varies greatly in different 

4th. Conjelo and cova. — This is the last layer, 
which rests upon the rock. It is formed by a mixture 
of common salt, various sulphates, and other salts, but 
contains no saltpetre. Its thickness is also very 

The limpid caliche is taken to the finishing estab- 
lishments, where it is submitted to a process of purifi- 
cation which is founded on the great solubility of 
nitrate of soda, superior to the other salts which are in 
combination with it, in water heated to the boiling- 
point. The solutions which result are carried by means 
of troughs to great vats, where the nitrate of soda 
crystallizes along with the potash, which exists in 
small quantity together with a little common salt and 
a small amount of sulphates and impurities. 

The quality of the saltpetre thus crystallized is 95 
per cent of nitrate of soda, and it is known by the 
name of ordinary or current saltpetre. Refined salt- 
petre of the grade of 96 per cent is also obtained by 
submitting the warm solutions to a light and short 
decantation, by which there is left a part of the salt 
and the impurities. The refined product is passed 
immediately to the crystallizing vats. For this process 
powerful machinery is used which can refine 1,000,000 
pounds of saltpetre daily. The residue of the nitrate 
of soda is known by the name of ripio. Its per- 
centage of saltpetre is estimated below 15. 

The saltpetre zone is served with railways. These 
leave the various ports and ascend to a height of 4,000 
feet above sea-level, with the exception of those of 


Caleta Buena and Junin, which stretch from the sum- 
mits of the neighboring Cordillera to the sea and 
are united with the ports by means of automotors. 
The automotor piano of Junin has a vertical height of 
2,145 f* eet > an d those of Caleta Buena 2,430 feet. 

The Granja or Challorcollo road traverses the 
pampas of Tamlugal, and reaches the foot of the hill 
of Challorcollo. From this point there is a hanging 
railway, which reaches the mines in the summit of the 
hill at a height of 4,600 feet and is two miles long. 

An important factor in the production of nitrates is 
coal, which is used in large quantities, the consump- 
tion being not less than 400,000 tons annually. The 
prices fluctuate from 22 to 28 shillings per ton. 
Generally English coal or that from Australia is used. 
Chilean coal is not employed to any extent. The 
home production is hardly sufficient for the needs of 
the railroads and the industries in the southern part 
of the country. Besides, the ships which carry the 
nitrates to foreign ports return with coal as the cargo. 
The freight rates to Europe for the nitrates vary from 
20 to 30 shillings per ton. 

In all the deposits iodine is found formed of salts 
with the base of soda. The salts of iodine dissolve 
along with the nitrate of soda, and later are extracted 
from the mother waters which have remained after the 
crystallization of the saltpetre. The process is simple 
and cheap, and the iodine is obtained in the metallic 
state and perfectly pure, in which condition it is a 
commerical commodity. 

The small consumption of iodine in the industry 
has caused the producers of the entire world to form a 
combination to limit the production and fix its relation 


to consumption. The agreement obliges all the salt- 
petre establishments of each country to withdraw only 
a very small part of the iodine which their properties 
contain. At some future period the refuse of the 
saltpetre will be worked to extract the iodine. 

The annual production of iodine is approximately 
4,200 Spanish quintals. The price of the substance 
is about 5^2 pence per troy ounce. The total export 
tax varies from $150,000 to $100,000. 

To the east of the ports of Punta de Lobos and of 
Hurmillos is a great salt field extending over an area 
of 32,000 hectares, or 80,000 acres. It is covered with 
common salt, or chloride of sodium. The salt is per- 
fectly pure and crystallized. The analyses have given 
99.99 per cent of chloride of sodium. The thickness 
of this salt layer is not known. The deepest wells 
have reached 82 feet. In a recent year 220,000 quin- 
tals were exported to the interior of the country. The 
good quality of this salt allows it to be used in every 
class of industry and also for domestic purposes. 
Besides the great salt bed named, there are various 
others, but these are not so important. 

The number of laborers employed in the nitrate 
industry varies from 20,000 to 25,000 according to the 
activity of the season. Production in some years has 
been curtailed through the scarcity of labor or through 
strikes and similar causes. 

The principal application of saltpetre is in agricul- 
ture, it being employed as manure for land worn out 
by many years of continuous cultivation. Some crops 
give 25 per cent to 30 per cent more than those which 
are raised without fertilizing the ground with nitrates. 
In special cases the returns have been much larger, 


and it is on this account that this fertilizer has obtained 
so considerable an increase in all markets. 

The stock of saltpetre was calculated for the entire 
nitrate zone as of January i, 1900, approximately as 
follows : 

Spanish Quintals 

Tarapaca — Private properties 407,160,000 

State properties 165,888,513 

Total 573,048,513 

Toco — Private properties 138,112,000 

State properties 87,726,769 

Total 225,838,769 

Aguas Blancas and Antofagasta — Private properties . 153,000,000 
Taltal — Private properties 151,984,500 

Grand total of nitrates 1,103,871,782 

To this calculation should be added the nitrates 
which may exist in the pampas without having been 
discovered up to this time both in Tarapaca and in 
the districts of the South. In Tarapaca are the pam- 
pas of Orcoma, in which have been found layers of 
saltpetre of low grade, but which later may prove 
worth developing, though not while deposits of greater 
importance exist and while the present prices are 

There are also deposits of saltpetre to the north of 
Pisagua in the pampas of Tacna, but in small quantity 
and in isolated beds. 

Deducting the output from the time the calculation 
was made to 1905, the total would be 951,754,000 
quintals then untouched. The nitrate fields which 
have not been reconnoitred have been estimated at 
500,000,000 quintals, but that is rather a guess than a 
calculation. A safer assumption would be 300,000,000 


quintals. The Antofagasta district has come up to 
expectations. Approximately, then, it may be said 
that in 1905 Chile had a nitrate reserve of a billion 
and a quarter (1,250,000,000) quintals of fertilizing 
material for the world's needs. That is a prodigious 
quantity, but not an inexhaustible one. In the eleven 
years from 1894 to 1904 inclusive the exports in- 
creased at an average rate of 1,000,000 quintals an- 
nually. They were 23,947,000 in 1894; in 1904, 
32,387,000 quintals. 

The industry is in every sense a modern one, for it 
is controlled by a combination, or trust. This ar- 
rangement has one good feature : it insures reliable 
statistical data. The prospect as to production may 
be readily grasped when the explanation is made that 
the output for the year which ended with the first 
quarter of 1905 was placed at 36,000,000 Spanish 
quintals as against 32,387,000 the previous year. 
This means a direct revenue of $20,000,000 gold as 
long as the rate of production is maintained. A 
lowering of prices might cause the output to be 
lessened a few million pounds, but the world's de- 
mand is steady enough to assume that for the present 
period these figures may stand substantially without 

In the entire nitrate zone there are about 100 qficinas, 
or clarifying establishments. The original combination 
of the producers, or trust, was for five years, and be- 
gan March 31, 1901. The amount of saltpetre which 
the qficinas may produce is fixed annually by a direc- 
torate. The exportation cannot be less than the pre- 
vious year's consumption. 

If the rate of production fixed by the combination 



during recent years should be maintained without 
further change, there would remain 33 to 35 years 
more of nitrate exploitation on the present scale. 
Nothing, however, is more improbable. The product 
will be increased as rapidly as good prices can be ob- 
tained, and the experience of the last ten years has 
shown that the consumption grows fast enough to 
justify the larger output. No combination of pro- 
ducers can keep new capital from coming into the 
nitrate fields, for no vague fear of the future will be 
strong enough to cause the government to withdraw 
from rental for an indefinite period its nitrate prop- 
erties. The new capital wants quick returns on the 
investment. It urges advertising, spending more 
money in the propaganda maintained to educate the 
world in the value of saltpetre as a fertilizer. 

Against constant pressure for widening the market 
may come competition from artificial products, or new 
discoveries of nitrate fields in the desert of Sahara or 
in California that will terminate the monopoly of pro- 
duction and cause the export tax to be lowered. But 
while the profits might be lessened from some such 
cause, it does not follow that the production would be 
curtailed. It would the more likely be swollen. Ex- 
pert opinion is that the existing oficinas could double 
their output. The profit which now accrues from an 
annual production of 35,000,000 or 36,000,000 quin- 
tals could be spread over 50,000,000 quintals and 
still show a margin of gain. Thus in any view 
the quantity of saltpetre extracted is likely to grow 
with each year, subject only to temporary checks or 

Studied in every light, Chile's Aladdin's lamp 


flickers, for the life of the nitrate industry as a national 
wealth producer draws to a close. A third of a cen- 
tury to forty years reasonably may be fixed as the term 
of its existence. After that will remain the debris of 
the industry, and possibly before the' beds approach 
exhaustion, irrigation will make the dead pampas 
blossom with the luxuriance of tropical agriculture, 
and the present sparse and artificially sustained pop- 
ulation will be supplanted by populous farming 

In the opening chapter I have stated that the 
Panama Canal in its ultimate economic influence will 
not affect the nitrates or be affected by them, because 
their life is limited to the infancy of the waterway, 
while, during the period of their existence that may re- 
main after it is opened to traffic, the bulky nature of 
the cargo which must pay the tolls counteracts the 
possible shortening of the distance. It may develop 
that other commercial considerations will cause some 
diversion of the nitrate carrying-trade through the 
Canal, but this will be chiefly for the gulf ports and 
the Atlantic coast of the United States. It is not 
likely to become important, since the market for salt- 
petre fertilizers is mainly in Europe. England takes 
directly and for the Continent between 7,000,000 
and 8,000,000 quintals annually, Germany about 
1,000,000 more, and France 5,000,000 quintals. 
Other European countries import from 500,000 up 
to 2,000,000 quintals. The east coast of the United 
States imports 5,000,000 quintals, or not more than 
15 to 20 per cent of the total production, though the 
consumption is a growing one and is stimulated by 
systematic advertising. This proportion may increase 


without materially lessening the cargoes of nitrates 
which will be transported through the Straits or 
around Cape Horn to Liverpool, Hamburg, and 

After the nitrates, copper is the most productive 
source of mineral wealth, and is the most important 
element in metal mining. The output ranges from 
30,000 to 35,000 tons each year. The heaviest out- 
put is in the northern region, where the outlet is 
through the ports of Coquimbo and Antofagasta, but 
the single district of Lota in the South has a larger 
output than either of them. It contributes from 
7,000 tons upward in bars and ingots. The Guaya- 
can mines in the Department of Ovalle have a similar 
output. In the district of Chuquicamata, which is in 
the volcanic Cordilleras, 160 miles from Antofagasta 
by the railway and 9,000 feet above sea-level, are half 
a dozen copper mines producing 18,000 to 20,000 
tons of ore which averages 18 per cent. The area is 
8 square miles of country rock of pure granite with 
true fissure lodes, and it is estimated that there are 
15,000,000 tons of decomposed rock averaging one- 
half of 1 per cent of copper. In the Capopo district 
are a group of copper mines which have a monthly 
output of 2,500 or 2,600 tons of ore, the sulphides 
predominating in most of them. 

The copper industry of Chile has been a reason- 
ably profitable and steady one, and without doubt it is 
capable of a considerable expansion by the application 
of modern methods and the more general adoption of 
improved machinery. The bulk of the shipments is 
in the form of fine bar copper, though both regulus 
and copper ores are exported. 


The coal mines are located in the Provinces of Con- 
cepcion and Arauco, the most productive veins being 
at Lota and Coronel. This is utilized on the railways 
and in local industries as well as in coaling vessels, 
but the output does not equal the demand, and Chile 
may be looked upon as an importer of coal for an in- 
definite period. There is lignite to the south toward 
the Straits, but its commercial value has not been 

Iron ore has been found in the Province of Co- 
quimbo and elsewhere, but the production is light. 
The government made valuable concessions to a 
French company which agreed to establish an iron 
industry in Valdivia. 

The gold that exists in the North, where the lodes 
are quartz, and the lavaderos, or washings, in the allu- 
vial soil of Tierra del Fuego are not likely to become 
important sources of national wealth, though new dis- 
coveries which prove worth working are reported 
from time to time. 

In times past, Chilean silver mines have been quite 
productive. The most famous were the Chanarcillo 
and Chimbote in the Copiapo district, which a few 
years ago were declared to be worked out. A group 
in the Iquique region includes the mineral section 
of Huantayaja. The total output from this group 
during the ten years preceding 1892 was placed at 
$22,000,000. After that the production decreased, 
though it was said to average $400,000 annually. 
The depth of workings in these mines varies from 
200 to 2,000 feet. The general character of the ore 
is chlorides, and the formation of the rock is porphy- 
ritic and calcareous. White silver about 95 per cent 


pure and the very rich ores are found in pockets near 
the contact of the calcareous porphyritic rocks. Near 
these mines is the mineral section of Santa Rosa which 
includes the Consequencia and the Pansio. The lat- 
ter is said to have produced $ 1,600,000 during the 
last ten years. 

In the Province of Antofagasta are the two silver 
districts known as Caracoles and Inca Caracoles. The 
former is 1 10 miles from the coast. These mines were 
discovered so recently as 1869. The lodes were of 
extraordinary richness. The ores were chiefly chlo- 
rides, iodides, and mixtures of chlorides and sulphides. 
The ore deposits were superficial, and the ore generally 
was found in pockets. The shafts were from 300 to 
600 feet deep, though one of them had a depth of 
2,500 feet. Deep mining was abandoned, as it was 
shown that the veins split up into small fissures. 
The output of the Caracoles group was estimated at 
60,000,000 ounces of fine silver up to the time when 
the mines were practically abandoned. At present 
the output is said not to exceed a few thousand 

The Inca Caracoles mines are situated near the 
town of Calama, 150 miles from the port of Anto- 
fagasta. The country rock is porphyry, and the lodes 
range from 3 to 6 feet in width. The ore is chiefly 
chloride, and averages 40 ounces to the ton. Heavy 
freights and the absence of water have prevented the 
development of this group, and the prospective output 
cannot be accurately estimated. However, it seems 
to have great possibilities. 

Neither copper nor silver ever will suffice to make 
up the deficiency in the national wealth caused by the 


gradual exhaustion of the nitrate beds, yet increased 
transportation facilities and the application of the 
newer processes give promise of a revival of the min- 
eral industry and an appreciable addition to the 
productive resources of the country. 



National Life a Growth — Anarchy after Independence — Presi- 
dents Prieto, Bulnes^ Montt, Perez — Constitution of 1833 — 
Liberal Modifications — The Governing Groups — Civil War 
under President Balmaceda — His Tragic End — Triumph 
of his Policies — Political System of To-day — Government 
by the One Hundred Families — Relative Power of the 
Executive and the Congress — Election Methods Illustrated — 
Ecclesiastical Tendencies — Proposed Parliamentary Reforms 
— Ministerial Crises — Party Control, 

CHILE has a political history that marks an 
isolated chapter among the Spanish-American 
Republics. Its unique and significant feature is four 
successive and peaceful presidencies of ten years each. 
The phenomenon is worthy of study. The tributes 
which the Chileans pay themselves are merited. Their 
national life has been a growth and not a series of 

After independence was achieved through O'Higgins 
in 18 1 8, the Liberator was sent into exile, because he 
sought to exert kingly powers as a dictator under the 
merest crust of republican forms. The riot of liberty 
followed for ten or twelve years with frequent revolu- 
tions, changes of rulers, and unavailing efforts to form 
a stable government. The anarchy of license under 
the mask of popular institutions reached its height 
during the period from 1828 to 1833, wnen tne Lib- 
eral party — that is, liberal in name — was in power. 


Then came the Conservatives, or reactionists. They 
forced the adoption of the Constitution of 1833, which 
remained unchanged for thirty-seven years. Order 
and tranquillity was the motto, and genuine republi- 
canism was choked in order that a government of law 
might live. 

Under this Constitution the colonial despotism 
differed only from that of Spain in that it was exer- 
cised by family groups, who controlled the Executive, 
rather than by a viceroyal representative of the distant 
monarchy. It was easy to suspend the Constitution 
and to put the whole country under martial law. 
The promptness with which this was done in the 
emergencies undoubtedly prevented the series of rev- 
olutions that cursed other South American countries. 
It was constitutional for the Executive to abrogate 
the organic law when the opposition got too active. 
The party in control under this Constitution of 1833 
always was known as the Conservatives, and the oppo- 
sition in a general way as the Liberals. Sometimes 
a faction of the Conservatives would split off and 
attempt a revolution ; sometimes the conservative ele- 
ment was really liberal in character, but not in name. 

From 1833 to 1873 Chile had four presidents, 
all elected and reelected under constitutional forms. 
These chief magistrates were Joaquin Prieto, Manuel 
Bulnes, Manuel Montt, and Jose Joaquin Perez. 
During General Bulnes* administration an army up- 
rising was attempted ; during that of President Montt 
a revolution started at Copiapo in the North. There 
were also other disturbances. But all of them were 
suppressed without long periods of civil dissensions, 
and though liberty seemed to be smothered under 


councils of war and the absolute suspension of indi- 
vidual rights, it was a hardy plant and after a brief 
period would begin to grow again. 

Under the Constitution of 1833 tne presidential 
term was five years, and there was no prohibition 
against a second term. In this manner each presi- 
dent reelected himself and enjoyed a ten years' tenure. 
But he could not have done this if the privileged 
classes, the family groups, had not sustained him. 
They were aggressive in defending their share in 
the oligarchy, and their individual independence they 
maintained as sturdily as did the English barons who 
forced the Magna Charta from King John. With 
the national development assured, the country began 
to chafe under the recognition of the autocratic power 
which was vested in the Executive, and to feel that the 
growth which would not have been possible without 
the colonial despotism under republican form had now 
reached the full measure. Consequently the agitation 
for liberalizing the Constitution began and was con- 
tinued persistently instead of intermittently. In the 
decade from i860 to 1870 the Conservative reaction- 
aries were pressed so vigorously and were on the 
defensive so constantly that the harsh features of the 
Constitution were modified in the spirit if not in 
the letter. 

During the life of this old parchment and the four 
Executives who put it into practice, — for there never 
was a dictator among them, — Chile consolidated her 
domestic interests, inaugurated the building of railways, 
and by the navy and other means prepared for the 
war which it was felt one day would be had with Peru 
and Bolivia. In view of all that was accomplished, it 


can hardly be said that the Constitution of 1833 and 
the power of the one hundred families as exerted under 
that instrument, were bad for the country. But a 
change was inevitable, and in 1870 the Constitution 
was reformed in a manner to bring it within the sphere 
of modern principles of government and remove its ag- 
gressive antagonism to republican institutions. Greater 
independence was conceded to the judicial power, and 
larger liberty of action to the municipal authorities, 
while the electoral right of the citizen was broadened. 
The presidential term remained at five years, but suc- 
cessive elections were prohibited so that the ten-year 
tenure could not continue. 

Frederico Errazuriz was the first of the Executives 
to serve under the amended Constitution. His term 
was peaceful and progressive, but was devoted chiefly 
to preparing for war by ordering the construction of 
the armored cruisers which rendered the Chilean navy 
so formidable. He was succeeded by Anibal Pinto, 
who had served in the cabinet as Minister of War. 
A financial and economic crisis supervened during his 
administration, and in its closing year was fought the 
war of the Pacific, with Chile as the antagonist of al- 
lied Bolivia and Peru. Chile's sweeping victories not 
only gave her the nitrate territory which she exacted 
as war indemnity; it made her the most aggressive 
and the most feared Power in South America. 

It is only with the internal political history that I 
propose to deal. A Chilean historian naively remarks 
that it had been the practice for the outgoing presi- 
dent to intervene in the elections in order to insure 
the election of a candidate of his own choosing. 
President Pinto announced his purpose of repudiating 


this practice, yet he was succeeded by Domingo Santa 
Maria, who had held the portfolio of Foreign Relations 
in his cabinet. President Santa Maria found himself 
antagonized by the Conservatives and one wing of the 
Liberals. He tried to organize an administration 
party and to control the election of senators and 
deputies in the Congress, but failed. This was a 
clear manifestation of the inability of the Executive 
to rule without the consent of the families who com- 
posed the various political groups. But the issue be- 
tween the Executive and the families was to be forced 
by a more resolute hand. Its outcome was dramatic, 
a tragedy for the nation and a tragedy for one of the 
country's greatest men. 

Jose Manuel Balmaceda was chosen president in 
1886, after a sharp electoral struggle in which the Con- 
servatives and the reactionary faction of the Liberals 
opposed him. He sought to conciliate the latter by 
calling some of them to his cabinet. He had grand 
plans for the development of the nation, and he wanted 
a united support. 

President Balmaceda strengthened the naval and 
military establishment out of the nitrate proceeds; but 
his guiding ambition was to apply them to public im- 
provements, railways, roads, harbors, and schools. The 
Conservative-Liberal fusion thwarted him. It pre- 
vailed in the Congress, and demanded that he name 
ministers satisfactory to the majority. This he claimed 
was in violation of his constitutional prerogatives. 
The Congress refused to authorize the taxes and ap- 
propriations necessary for carrying on the government. 
When for any reason this was not done at the regular 
session, the practice had been to convoke the Congress 


in extra sessions. President Balmaceda, wearied with 
the controversy, abstained from taking this action. 
On January i, 1891, he announced that the appropri- 
ations for the current year would be the same as during 
the previous year. 

Bloody, merciless civil war followed. The Con- 
gressionalists proclaimed that their contest was against 
Executive usurpation. They removed to Valparaiso, 
and took refuge on the warships which had been pre- 
pared for them. They named Captain Jorge Montt 
as Commander of the National Squadron. President 
Balmaceda declared Montt and the naval commanders 
who obeyed his orders traitors. The President organ- 
ized an army, while the navy sailed for Iquique and 
seized the nitrate provinces. 

The Congressionalists instituted their provisional 
government there to carry on the war against Presi- 
dent Balmaceda. They organized troops which were 
transported to Valparaiso and defeated the garrison. 
A second victory at Placilla and they were in control 
of the capital, welcomed by the populace as liberators. 

Balmaceda took refuge in the Argentine Legation. 
Flight across the Andes was open to him, but he dis- 
dained it. He waited calmly till September 19, the 
day on which his constitutional term as president 
ended, wrote farewell letters to his family and friends, 
arrayed himself in black, pointed a revolver at his 
right temple, discharged it, and died instantly. His 
policies live. 

I have recalled these swiftly tragic events without 
any intention of opening up controverted subjects. 
My purpose has been to sketch them only in their 
relations to the political system of Chile as it exists 


to-day, for they influenced it and caused modifications 
of the Constitution restrictive of the Executive power. 

By the books the form of Chilean government is 
popular representative. To the foreign observer the 
wonder grows that a system which gives such inor- 
dinate power to small groups of families, who call 
themselves political parties, and which binds the Ex- 
ecutive hand and foot, can prove satisfactory. But it 
suits Chile, or has suited her, and the country pro- 
gresses. That is the conclusive answer. If Chile 
chooses to make a strait-jacket for herself, that is her 
own concern, and if in that strait-jacket she expands 
and develops a progressive national life she may be 
permitted to take her own way and her own time for 
freeing herself. 

But what of the governing classes ? Who compose 
them? The Chilean professional man or merchant 
or government official will tell you, as he told me, 
that there are no class distinctions, and at the same 
time will take pride in drawing himself and his fellows 
far apart from the masses. It has been said that a 
hundred families have ruled Chile for seventy-five 
years. The numeral might be doubled or trebled, but 
the truth would not be changed. The landed inter- 
ests, the commercial community, and the Church have 
ruled the country, and it must be said that they have 
ruled well. They may accuse one another of being 
false to their trusteeship, but the foreign observer is 
not impressed with this charge. All of them have 
worked together to make Chile the powerful and 
aggressive little nation that she is, and have secured 
her the respect that the rest of South America has 
given her. But they have taken all the benefits for 


themselves, — the honors and emoluments of public 
office, the opportunities for wealth that came from the 
nitrate fields, the chances for careers that have been 
afforded by the army and the navy. It may almost be 
said that the army and navy exist for the employment 
of the one hundred families. 

Chile herself is not a country of great private for- 
tunes. One or two families have been enriched by 
mines, a half-dozen by banking and commercial devel- 
opment, a larger number by the nitrates. But when 
it is all said, the Chilean hundred families are kin of 
moderate means. Their main sources of income are 
from their landed estates. These land-owners do not 
tax themselves heavily. As in the majority of coun- 
tries of Spanish America, the government imposts are 
laid on the revenue from the land and not on the 
land itself. The landed proprietors contrive that these 
imposts shall be light. 

The existing regimen, as studied on paper, is almost 
a complete reversal of the regimen under which for 
nearly half a century Chilean nationality was devel- 
oped and the little ribbon of a republic was consoli- 
dated and made strong. . The old form was a colonial 
despotism, with monarchical powers for the Executive. 
The present system is congressional despotism with- 
out republican powers for the Executive, but under 
both forms the one hundred families have ruled. The 
president is selected by electors chosen in the prov- 
inces through direct suffrage, since there is no such 
thing as provincial legislatures. 

Intense jealousy of the power of the Executive is 
shown. Politically the president of Chile is a cipher, 
though he has vast power in relation to public contracts. 


But he can rule only as the instrument of the Congress. 
Not only does the ministerial system prevail in its 
most extreme form, so that it is not unusual for the 
cabinet to be changed half a dozen times within a 
short period, as happened in 1903 and 1904, but a 
further limitation is put on the president's authority 
by the Council of State. He governs through this 
body, which is composed of eleven members, the ma- 
jority of whom are selected by the Congress, each 
branch naming three. The remaining five can be 
chosen by the president only from designated func- 
tionaries, one of them always being the Archbishop. 
Thus it cannot be said that there are three coordi- 
nate powers, legislative, executive, and judicial, in the 
Chilean government. 

In operation there is no equilibrium of executive 
and legislative powers, because Chile is governed, 
ruled or misruled, by the legislative branch. The 
authority of the Congress is very extensive, and it 
never sleeps on its rights. Usually it keeps the 
president awake seeing how they can be respected 
and executive policies at the same time be carried 
out. An election for Congress is not greatly different 
from a similar event in the United States. The par- 
ties nominate their candidates, usually after a caucus. 
Minority representation obtains. Electioneering is 
done through the newspapers, through meetings, and 
through placards. The placards cut a very extensive 
figure. The manifestoes of the candidates, their allo- 
cutions and appeals to the voters, are printed in type 
so big that the one-eyed man must see and stop to 

Election methods in many respects are patterned 


after the United States, and it is considered fair pol- 
itics for the party which gets control of the voting 
machinery to use its advantage without particular re- 
gard for the will of the voters as manifested in the 
ballots. An example of this was given me which 
showed that Chilean politicians have a fine sense of 
humor, — one which would be appreciated by Tam- 
many or by Philadelphia. Mr. George Asta-Barragua, 
who related the incident, had lived in Washington 
when his father was minister to the United States, 
and could enjoy the pleasantries of politics in either 

The contest was very bitter between two candi- 
dates who might be disguised as Lopez and Martinez, 
those names being as common as Smith and Jones. 
The friends of Martinez secured a majority in the 
election board, but Lopez had the privilege of naming 
the minority member, one Rodriguez. The ballots 
deposited were evenly distributed. The majority of 
the board calmly counted all of them for Martinez. 
Rodriguez protested, but without avail. The Mar- 
tinez faction had determined that in this precinct 
there should not be one vote for Lopez. After 
numerous energetic and violent protests, Rodriguez 
saw that the game was against him, and only varied 
the proceedings by violent protests in the nature of 
shaking his fist under the noses of his co-judges. Fi- 
nally he contented himself with shrugging his shoul- 
ders, and the proceedings went on good-naturedly. 
His co-judges joked him, and he jested with them. 

The last thing to be done was for the judges them- 
selves to cast their ballots. Then Rodriguez made 

his final stand and delivered a little speech to the 



other judges. It was in substance as follows : " Gen- 
tlemen, I recognize that you are two against one. I 
won't say that we would n't have done the same if we 
had been two against one. But now that the farce is 
nearly over, I have one request to make, which as 
honorable gentlemen you surely will grant. It would 
be scandalous if, with myself as the representative 
of Lopez, the word was circulated that I did not vote 
for him. Therefore my request, honorable associates, 
is that I may cast my ballot and have it counted for 

His honorable associates conceded that it was his 
duty to cast his ballot. He did it with the name 
LOPEZ in great black letters. His honorable as- 
sociates calmly counted the ballot for Martinez. 
Rodriguez protested energetically. Colleague No. i 
picked up the ballot, remarking, " There is no vote 
here for Lopez," Then he held it up and said to 
Colleague No. 2, " Do you see anything of the name 
of Lopez here ? " Colleague No. i slowly spelled 
out, " M-A-R-T-I-N-E-Z." Rodriguez then gave 
it up, and the vote of the precinct as returned showed, 
for Martinez, 267 ; for Lopez, o. 

I was assured that this was an actual occurrence, 
and it certainly was a fine exhibition of campaign 

The Roman Catholic Church is a part of the 
political system, and is a political power in Chile, 
although there is no discrimination against Protes- 
tant forms of worship. In 18 13, during the struggle 
for independence, Bishop Villadres preached in the 
name of God war against the patriots. Bishop An- 
dreu preached war against the King's soldiers. Thus 


the Church was not arrayed wholly against the pa- 
triots. They recognized it in the Constitution, and 
it receives State aid. 

While the influence of the hierarchy in the main 
has been reactionary, the ecclesiastical authorities have 
been politic enough not to antagonize the ruling fam- 
ily groups. When they have sought to do so, they 
have been worsted. 

The Chilean government is measurably independ- 
ent of ecclesiastical dictation. It always has insisted 
on its right to nominate the Archbishop, and when 
Rome has been unwilling to recognize this nomina- 
tion the Archbishopric has remained vacant. That was 
the condition for several years previous to Balma- 
ceda's election as president. Then a compromise was 
effected by the Vatican recognizing the choice of the 
administration. A Papal legate is maintained at San- 
tiago, and the intrigues and manoeuvres to give him 
precedence have caused unpleasantness in the Diplo- 
matic Corps. Of late years the Church influence has 
been decidedly reactionary. This was accentuated on 
the death of Pope Leo, when the Bishop took occa- 
sion to preach a political sermon, aimed not only at 
the Italian government but at Liberal governments 
everywhere. The leading public men resented this 
reactionary tendency. When the priests expelled from 
France sought an asylum in Chile, they were frigidly 

The efforts to reform the political system relate 
both to the executive and to the legislative branches. 
One group wants the vice-president chosen, as in the 
United States, to succeed to the Executive functions 
on the death or incapacity of the president. Under 


the present form there is no elected vice-president. 
That functionary is the Minister of the Interior, and 
usually he is a member of the House or of the Senate. 
When the president desires to forego temporarily 
the responsibilities of office or becomes ill, he can 
withdraw and turn the administration over to the vice- 
president. The latter official during the interim exer- 
cises all the powers of the chief magistrate, but in 
case of the president's death a new Executive is 
chosen to fill out the term. The agitation for an 
elective vice-president is not very pronounced, though 
it may be made a part of the programme of one or 
the other of the political groups. 

The movement for a change with regard to the 
Congress is more definite. One phase of it relates to 
the form. Some want to dispense with the formality 
which takes place at the opening of Congress when 
the president is escorted to the hall of the Sessions by 
the troops, is attended by the cabinet, and delivers his 
message in person in the presence of the Diplomatic 
Corps and of distinguished officials. It is not a live 
question. I attended an opening session in company 
with Minister Wilson, and thought that the message 
acquired dignity through its ceremonial delivery. 

The vital reform which many Chilean public men 
think necessary in order that national policies may 
be carried forward and the government placed in 
harmony with popular sentiment, is a complete over- 
turning of the present parliamentary system, with its 
frequent and ridiculous ministerial crises, the conse- 
quent cabinet changes, and the interruptions in the 
Executive's policy. The theory of parliamentary 
government is carried to an extreme which hardly 


could be conceived of in England. It would make a 
Frenchman envious of the ease with which ministries 
can be upset and new ministries set up to be over- 
thrown in their turn. 1 It is a panorama of lightning 
parliamentary changes. The consequence of the pres- 
ent system is to continue the power of the family 
groups who call themselves by various names and who 
may or may not reflect distinct political tendencies. 
All of them must be represented in the cabinet. Occa- 
sionally by means of a coalition or a fusion the Execu- 
tive may secure something like a political majority, 
but it does not hold, because the elements composing 
it have too many selfish interests and too many in- 
dividual ambitions to gratify. Sometimes, too, the 
House may be satisfied with the cabinet, while the 
Senate refuses to accept it. That was the condition 
in the Fall of 1904, when the Liberal Alliance was the 
power behind the ministries. 

The leading men who are agitating for a reform are 
radical in their programme, for they want Chile to 
adopt the practice of the United States, and nothing 
can be more opposite than our own system and that 
which now obtains in Chile. These reformers would 
have the Executive sustained by a political party in the 

1 The Chilean correspondent of a London newspaper gave this illus- 
tration: "Valparaiso, February n. The changes effected in the com- 
position of the Chilean Ministry, and especially the Finance Department, 
have at times been so frequent that not very long ago both the British 
and the United States Ministers informed the President that for the 
future they would be unable to recognize any change. They complained, 
not without sufficient reason, that no sooner had they entered into arrange- 
ments with one Minister of Finance than these had to be suspended and 
commenced de no<vo with his successor, who, again, at the final stages, 
referred the foreign representatives to his successor at the Treasury 
Department.' ' 


Congress ; but even when he may not have a partisan 
majority back of him, they would have his administra- 
tion, chosen as it is for five years, assured the voting 
of the necessary appropriations and the power to con- 
tinue the policy on which he was elected. That, they 
argue, would give continued internal tranquillity and 
strength abroad. This was lacking to Balmaceda, and 
its lack caused him to defy the Congress and go out- 
side the Constitution. A long time must pass before 
Chilean public sentiment can be educated up to the 
point where a hostile partisan majority in the Congress 
will not dare to refuse to vote the ordinary appropria- 
tions of the government. When that point is reached, 
there will be simply two political parties instead of 
half a dozen groups centring around individuals. 

When I was in Chile in 1903, there were four par- 
ties who were recognized, and these were split into so 
many sections that it was hard to distinguish them. 
The parties were the Liberals, the Radicals, the Con- 
servatives, and the Social Democrats, or Populists. 
But the Liberal party was composed of middle-of-the- 
road Liberals, moderate Liberals, and liberal Demo- 
crats, while the Conservatives were divided into regular 
Conservatives and clerical Conservatives, with a shad- 
ing off into minor groups. The general tendencies 
were clear, and an alignment was forming between 
Liberals of all shades in order to combat the Conser- 
vatives. The growth of the Liberals is a revival of 
the Balmaceda policies. Their success means reforms 
in the parliamentary system, more freedom for the 
Executive, and perhaps a broader foreign policy in- 
cluding the frank recognition of the influence on the 
Panama Canal on all the Pacific coast of South 


America. It is generally assumed that no president 
can now be elected in Chile who is not satisfactory 
to the Balmacedists. President Jerman Riesco, who 
was chosen in 19D1, gave a liberal and temperate 

But these tentative suggestions of reform in the 
political system, and even the tendencies in regard to 
public policies are only surface ebullitions if they are 
studied without an insight into the deeper social and 
economic conditions, for Chile has social and economic 
questions of a more pronounced character than any 
other country in South America. I defer their analy- 
sis for another chapter. 



Existence of the Roto Discovered — Mob Rule in Valparaiso — 
Indian and Caucasian Race Mixture — Disquieting Social 
Phenomena — Grievances against the Church — Transition to 
the Proletariat — Lack of Army and Navy Opportunity — 
Not Unthrifty as a Class — Showings of Santiago Savings 
Bank — Excessive Mortality — Need of State Sanitation — 
Discussion of Economic Relation — Changes in National Ten- 
dencies — Industrial Policies to Placate the Roto. 

IN the fabric of Chilean social organization the warp 
is the individual unit known as the roto. The 
roto constitutes the mass. Pelucon, aristocrat, is a 
term transmitted from the old regime. Violent objec- 
tion is made to its use at the present day on the 
ground that there are no privileged classes and that it 
never had more than a restricted meaning. But it 
describes the antithesis of the roto since his evolution 
into the proletariat began, and it typifies a recognized 
social distinction, so that its use is permissible. Pelu- 
con comes within the designation of the governing 
classes and the one hundred families, and does not 
require further explanation. 

One morning in May, 1903, the Chilean govern- 
ment and the foreign residents awakened to the exist- 
ence of the roto as an organized element in society, 
with destructive capabilities and the courage of de- 
structive tendencies. Disputes with the steamship 
companies had resulted in a strike. That morning 


the mob seized Valparaiso and took to burning prop- 
erty, pillaging, and killing. It was a wild mob, but it 
had perception and direction. It- burned the offices 
of the Chilean corporation known as the South Ameri- 
can Steamship Company, and undertook to sack one 
of the newspapers, but it left unharmed the property 
of the Pacific Steam Navigation Company, which was 
a British corporation. Its grievances against both 
companies were the same, but this Chilean mob would 
give no ground for foreign intervention. 

The authorities were blamed for the demoralization 
which the strike developed. It was charged that the 
forces were at hand to quell the disorder, and that a 
firm show of strength would have saved the hundred 
lives which were sacrificed before the rioting and sacking 
were ended. The inquiry was made why five hundred 
marines who were available were not utilized. The 
sinister reply was that they had refused to be used, that 
they had been on the point of mutiny when it was at- 
tempted to use them. They were of the roto class, re- 
cruited from the same ranks as the strikers. The exact 
truth never got to the public. The Chilean government 
vindicated its ability to maintain order and by the 
presence of warships and of troops silenced the clamor 
of the timid English and French residents who were call- 
ing for cruisers to be sent by their own governments. 

Ultimately the strike was adjusted. But the condi- 
tions along the coast as far as Pisagua also were 
bad. They were especially threatening at the nitrate 
shipping-ports. The national authorities kept a crui- 
ser at Iquique, and moved down from farther north 
additional troops. An outbreak of bubonic plague 
and the practical cessation of all industry helped to 


prevent the repetition of the scenes that had been 
witnessed at Valparaiso. Yet months afterward the 
embers of unrest at Iquique were smouldering, and 
official commissions were reporting " remedies for the 
grievances of the working-classes." A chain of trades 
unions. under various names, cooperative labor socie- 
ties, mutual aid associations, brotherhoods of working- 
men, seamen's unions, was in existence. The social 
question was the palpitating one. The restlessness of 
the masses of the population, including the roto 
classes, found another exemplification in October, 
1905, when Santiago for a time was under the control 
of rioters. The immediate cause was the agitation 
against the tax on the importation of cattle from Argen- 
tine. Back of it was the old-time discontent and the 
feeling that the government was being managed for the 
classes at the expense of the masses. The high cost of 
meat was something that came home to the bulk of the 
population, and it took to rioting, killing, and wounding 
as well as to destroying property as the means of show- 
ing its dissatisfaction. The rioting was not stopped 
until the police had been reenforced by the troops. 

A generation ago J. V. Lastarria, the Chilean dip- 
lomat and historian, asserted : " The Chileans are the 
most homogeneous, most enlightened, most patriotic, 
and most united people of Spanish America, and they 
know how to use in the most practical and most 
prudent manner their political rights." He also de- 
clared that the physical and social elements of his 
country explained her salvation from the disastrous 
anarchy which the other Republics had suffered and 
her progress in all spheres of human activity. 

This complacent judgment was not unjust, but in 


describing his countrymen Senor Lastarria meant 
chiefly the higher stratum, the governing classes. 
When he wrote, the robust race mixture was yet going 
on, the amalgam of peasant northern Spain and of the 
Basque, after two centuries of transplantation, with the 
fierce Araucanian Indian blood. Not all of the abo- 
riginal amalgam has been Araucanian. There are ten 
distinct aboriginal tribes known in Chile, and in the 
northern part the mixture has been more that of the 
Indians of the historic Upper Peru or Bolivia. All 
of these tribes have been habituated to hardship, and 
the grosser qualities of civilization have been devel- 
oped aggressively. 

The Chilean lower stratum of to-day is far from the 
refinements of civilization. Its vices and its virtues 
are equally strong. Among the virtues is native in- 
dependence. The vices are of crude, half-conscious 
brute power, with little restraint of the passions. 

Out of the race mixing — the mingling of European 
blood not always of the best and the Indian stock, with 
the Araucanian predominating — has come the roto. 
I studied him in various places and under varied con- 
ditions. He is not an individual for parlor-car com- 
pany, or an agreeable companion as to the physical 
senses in a journey in a second-class train, nor yet so 
unpromising as usually he is painted. In the ports he 
is found as a coast product. He is a longshoreman, 
stevedore, boatman. The English word roustabout 
in a measure helps to describe the Chilean roto, but 
insufficiently. It gives too transitory an idea of the 
personality. The roto is no wharf rat. He is a per- 
manent quantity, a fixture in the social fabric of the 
State, and he is a trade unionist. 


In the agricultural regions the roto class is peon 
and is not so marked, but it is the basis of the popu- 
lation. The day laborer in the towns of the North 
who has more of the Aymara Indian blood than of the 
Araucanian, and who possesses less instinct of class 
organization than the longshoreman, also shows dis- 
content. This wanderlust is one of the characteristics 
of the Chilean laborer. He is born a nomad. Even 
the most highly paid laborers in the nitrate fields 
refuse to be content and to stay. They are forever 
moving on. 

The outcome of the events of 1903 was that 
Chile discovered she had a palpitating social question, 
and began to seek the horizon which might bound the 
zone of unrest. Among the social phenomena ob- 
served were the disproportion between the deaths and 
births, the excessive child mortality, the emigration 
of Chilean peons to Argentina, the constant movement 
of the migratory mass apparently without aim, and the 
popular fever for striking. In these phenomena were 
discovered conditions which showed the actual state of 
the lower stratum, but the horizon was not complete. 
The Chilean observers did not note the phenomenon 
of the roto's slow perception of his own power, and his 
dawning conviction that there were classes in the State, 
and that in some way his class was down in the abyss. 
He was becoming a proletariat. 

The roto has many qualities in common with the 
higher classes. His patriotism is fully as deep. Hereto- 
fore he has been willing to fight at the dictation of the 
military commander, but the threatened mutiny of the 
marines was a warning. At that very time the con- 
scription was going on, and an uncommon sullenness 


was shown by the conscripts in the interior, and a 
vague resentment against being enlisted to fight their 
brothers. This was when the necessity of employing 
the army to break the strike was most openly discussed. 

In relation to the nitrate fields the roto fails to see 
that the high wages at one time prevailing there helped 
him, and now that the pay is dictated by the trust his 
resentment grows. He has a vivid grievance in the 
payment of his wages in scrip. In the early days for- 
tunes were made out of the saltpetre beds by officials 
and private individuals who already were comparatively 
rich. English parvenus little better than day laborers 
also gained riches. But the Chilean laborer developed 
no successful nitrate operator, no earner of day wages 
who became a millionaire. He seems to have been 
treasuring this up until the culmination has come and 
he is asking the question, How have the nitrates 
helped me ? Though he furnishes the chief revenues 
of the State and though he is not heavily taxed, the 
proportion he bears is not in ratio to his wealthy 
employer. This belief, undoubtedly, is one basis of 
the discontent. It may be summed up that the roto 
feels that he is no better off than if Chile did not draw 
an enormous income from the export tax on saltpetre. 

He also cherishes a grievance against the Church. 
Heretofore his devoutness or his superstition has 
been one of the bulwarks of the hierarchy. It inter- 
fered little with his crude morality, his notions of 
private vengeance, or his general conduct in the affairs 
of life. In a certain manner he venerated the priest 
and the symbols of ecclesiastical authority, and could 
be depended on to do whatever was put upon him. 
But this submissiveness has gone. The Church is a 


very large property -owner, and does not pay taxes in 
proportion to the burdens of the nation. The pro- 
letariat has become imbued with the belief that its 
aggressions are directed specially against him. 

This feeling in part may be due to the spread of 
socialistic doctrines, though the socialistic propaganda 
in itself in Chile is weak. So far as it has a standing, 
this is because the roto in his protest finds the move- 
ment the only available vehicle of utterance for his 
dissatisfaction. He is not socialistic by nature, be- 
cause what he takes by brute force from his weaker 
neighbor he expects to keep for himself and not to 
turn over to the vague entity known as society. The 
falling away of the roto from the Church is because of 
its goods and property which escape taxation, because 
of the feeling that his back is bent to the pack in order 
that a greedy ecclesiastical power which claims spiritual 
dominion over him may exist and pamper its ministers 
in luxurious idleness. 

Another cause of dissatisfaction, which a foreign 
observer may note more quickly than a native one, is 
the feeling of resentment that there is no opportunity 
for him in the army and navy. He forever must be 
of the ranks. He must fight the battles, but always 
in inferior station. The enlisted man never can be 
anything else. Both army and navy draw the line as 
severely as in the most exclusive military organization 
of Europe. The common soldier or sailor is clay, a 
mud ball, something to be kicked, but never to be 
recognized as a human being with aspirations and am- 
bitions. Yet it is the sailors of this class, as much as 
the daring commanding officers, who by their bravery 
and endurance have given glory to the Chilean navy. 


But neither naval commander nor army officer yet 
realizes that this clay is beginning to think, and to 
feel that something is wrong in the political organiza- 
tion of the State when he who sustains the State is 

Among the qualities of the roto, whether in the 
army or the navy or in the mass of the population, is 
persistence in his prejudices. He is not easily changed 
from that which is taught him. I was in Santiago 
during the celebration of the peace pacts with Argen- 
tina. The governing classes and the merchants entered 
heartily into those festivities. They knew that the 
prevention of war by the treaties had saved the 
country from bankruptcy, even though war might 
have brought territorial extension. But it was noticed 
everywhere that the masses took no part in the dem- 
onstrations. They either were surly or indifferent. 
They had been taught to believe that Argentina was 
an enemy with whom they would have to make war 
and from whom they would have a chance to take 
spoils. They could not readily change about and join 
in the celebrations of peace. 

If the roto in such a persistent manner retains the 
lesson that has been taught him, how much greater 
will be his doggedness in adhering to his self-taught 
lesson that something is wrong in the social order, and 
that he is the one who is wronged ? 

In the economic discussion of the social movement, 
citations will be made of the lack of thrift on the part 
of the roto classes, and their unwillingness to do any- 
thing for themselves. This is loose assumption, which 
is not warranted. On the seacoast he may be reck- 
less with his wages, but in the interior this is not true, 


and I question myself whether it is true to the extent 
claimed even in the seaports. In Santiago the Caja 
de Ahorros, or Savings Bank, has between 49,000 and 
59,000 accounts. The total deposits, as shown in a 
late annual report, amounted to $3,625,000. Out 
of nearly 50,000 depositors, only 355 had balances of 
$1,000 and more. Of the depositors under that sum, 
1,409 were soldiers ; 730 were private employees 5311, 
servants; 1,020, students; 342, seamstresses; 255, 
merchants ; 102, farmers ; 144, shoemakers ; 67, laun- 
dresses ; and 3,225 were set down as without pro- 
fession. Presumably this meant unskilled laborers. 
Santiago and its suburbs have a population of 300,000. 
While the aggregate of the deposits is not great, the 
very fact that the Savings Bank carries 50,000 small 
accounts, and some of them very small indeed, in- 
dicates no lack of thrift on the part of the mass of 
the population. 

In seeking the horizon of the social question one 
blot which may be remedied has been laid bare. This 
is the excessive mortality. A cause of the physical 
sturdiness of the roto who reaches manhood is un- 
doubtedly to be found in the survival of the fittest. 
That brutal doctrine is exemplified in him. He en- 
dures harsh conditions of life, lack of comforts, want 
of everything that is decent and helpful, and when he 
does grow up it is as a robust animal only half tamed 
by nature. 

The figures on this subject are startling. The 
annual death rate has been placed as high as 70 per 
1,000 and frequently it is given as 50 per 1,000. This 
is correct for the majority of the towns and cities, but 
does not apply to the country as a whole. The 


official statistics for a period of ten years, which I 
examined, did not exceed an average of 35 per 1,000. 
But even that is nearly double the normal death rate 
in temperate countries ; and Chile, not being in the 
torrid zone, is not subject to yellow fever and similar 
tropical epidemics. The figures showed that the birth 
rate and the death rate were almost balanced, since the 
birth rate ranged from 35 to 37 per 1,000. In 1895 
the total births reported were 110,000, and the deaths 
92,000, leaving an excess of 18,000 births over deaths. 
In 1898 the birth excess was a little larger. But in 
1 90 1 the births were 116,000 and the deaths 111,000, 
giving an excess of only 5,000. In previous years the 
births were not larger and even have fallen below the 
deaths. In a subsequent year a more normal con- 
dition was shown, the births numbering 115,813 and 
the deaths 88,607. In the two big cities no natural 
increase was contributed to the population. In Val- 
paraiso Province with 243,000 inhabitants, during a 
twelvemonth period there were 9,475 births and 9,674 
deaths. One year an epidemic of measles caused 
frightful ravages. In the year 1900, in the city of 
Valparaiso, the births were 5,610 and the deaths 7,170, 
and of the latter 2,245 were infants under one year of 
age. During this annual period the death rate per 
1,000 in Valparaiso was 54.4. In Santiago Province, 
with a total population of 434,000, the births num- 
bered 16,074, and the deaths 17,798. This excess was 
due to the city of Santiago, where there were 11,000 
births and 12,500 deaths in a total urban population 
of 262,000. The mean average death rate is a little 
higher than in Valparaiso, though the latter is subject 
to the vicissitudes of seaports. In a given year only 



one city of more than 10,000 inhabitants showed a 
death rate of less than 50 for each 1,000. This was 
Antofagasta, in which the proportion was 44 out of 
every 1,000. 

Indifference to personal comfort and the inevitable 
results of unsanitary living have helped to brutalize 
the roto, but it is wide of the mark to say that he pre- 
fers this existence. Cleanly and sanitary living are not 
so repugnant to him. What he needs is guidance and 

On the part of the State there is a remedy for this 
condition. University settlements and similar move- 
ments for bettering the condition of the poor through 
individual initiative are not yet practicable. In a 
government where Spanish paternalism is inherited, 
hygiene and sanitation are emphatically the province of 
the State and of the municipalities which depend on 
it, since they do not enjoy a large measure of home 
rule. A perception of this truth has been shown in 
the disposition to treat the roto's grievances as a social 
question rather than as a political issue. When this 
perception is translated into definite measures, his dis- 
content with the existing order will become less men- 
acing. For the government the lowering of the death 
rate and the increase of the birth rate per thousand 
has both economic and political significance. 1 

1 A cabinet minister was thus quoted on this subject in a foreign 
journal : 

" * You may put in the most up-to-date drainage, and introduce the 
most admirable sanitary improvements, but you cannot induce the low- 
class peons, such as form the bulk of the residents of this and other 
Chilean cities, to use them. The housing arrangements of the poorer 
classes are simply indescribable, and they live like animals, crowded together 
in miserable rooms for which they pay an exorbitant price. The people 


But is the economic and industrial relation of the 
roto to the State understood ? Yes. How often I 
heard it discussed, how often I listened to the asser- 
tion made by Chileans, that Chile as a nation has a 
rotten core, that the anomaly of a government riot- 
ously rich through a single source of revenue and of 
a people superlatively poor, cannot long continue ! 

I sat through one night with Senor A, and listened 
to his eloquent and passionate indictment of his coun- 
try and of the class of which he was the exponent, 
for he was of the ruling families. Another night it 
was with Senor B until the sun was breaking, and a 
third time it was with Senor C until the lingering 
habitues of the club were calling for their morning 
coffee. The talk ran in the same vein. The condi- 
tion of the poor must be bettered. There must be 
a change in economic policies ; dreams of conquest 
must be given over; the national revenues must be 
devoted to internal improvements ; foreign capital must 

— and especially the respectable class of employees — find it is impossible 
to secure clean and wholesome accommodation. Even the smallest rooms 
in the most unattractive houses are set out at absurdly high rentals — say 
from $10 to $15 (15/. ioi/. to 22J. 9*/.) a month each room. 

"'Does the Government, then, do nothing to improve or control the 
conditions of the poor classes and protect them from the extortions and 
ill-treatment of the landlords ? 

" < Unfortunately, no kind of sanitary or habitation laws exist at the 
present moment ; but I have often talked over the matter with the Presi- 
dent of the Republic, and both he and I are determined to do something, 
if we can, later on. Things move slowly in Chile, you know, and, 
although it may appear rather strange to you, coming from a European 
country, Chileans are not accustomed to see, and do not expect, radical 
alterations effected in their country. However, you have touched upon a 
most important social question, and one which I have had much at heart 
myself. Perhaps we may be able to do something in the direction of 
improvement,' " 


be encouraged to go into other industries than the 
nitrate gamble ; the military party must be curbed. 
" Then, Senor, there is a military party in Chile ? " 
" Ah, my friend, there is. Who can deny it ? " 
The military party was not a partisan organization, 
for it was only reflected in the different political groups 
which were at variance among themselves as to the 
details of their programme, though not as to the main 
purpose. This was territorial accretion, and the in- 
definite application of the nitrate resources for military 
ends as the means for continuing the supremacy of the 
army and navy elements. The reliance was the aggres- 
sive and sacrificing patriotism which is part of the being 
of every Chilean, whether high or low ; hence the dif- 
ficulty of combating it. But it took no thought of the 
roto ; therefore its weakness. 

A series of swift events — some domestic, some 
international — checked the militant military tendency. 
Through the peace pacts with the Argentine Republic, 
Chile found the opportunity of freeing herself from 
naval expenditures that were weighing her down. In 
the construction and control of the Panama Canal 
by the United States, her conservative statesmen were 
enabled to establish the definite lines of both com- 
mercial and political relations with the other countries 
of South America. By reason of the acuteness of the 
financial and industrial crisis which prevailed in 1903, 
the depth of the popular discontent was revealed, and 
the imperative need of finding a remedy was disclosed. 
The roto had to be conciliated, propitiated, humored, 
perhaps bamboozled a little, but always with a view 
to bettering his material condition. A comprehensive 
system of public works, railways, harbors, rivers, roads, 


and also municipal improvements, was recognized to 
be the channel into which the national income should 

It is the slow process of years during which the 
palpitating problems sometimes may throb with preg- 
nant intensity, but their solution progresses in the 
degree that Chile adheres to industrial and commercial 
policies, and recognizes the true function of the masses 
in the political and social fabric of the State. 



Agricultural Possibilities of the Central Valley — Its Extent — 
Wheat for Export — Timber Lands of the South — Wool in 
the Magellan Territory — Grape Culture — Mills and Fac- 
tories — Public Works Policy — Longitudinal and Other Rail- 
way Lines — Drawbacks in Government Ownership — 
Trans- Andine Road — Higher Levels of Foreign Commerce — 
Development of Shipping — Population — Experiments in 
Colonization — Internal and External Debt — Gold Redemp- 
tion Fund — Final Word about the Nitrates. 

TRADE and industry in the future will have a 
broader scope in Chilean national policies. The 
passing of the era of unlimited naval expansion assures 
this result. After the peace pacts with Argentina were 
made effective, and the building of new battleships 
was stopped, it was estimated that -$ 1,000,000 went 
into industries of the soil. By the sale of other super- 
fluous naval armament to European Powers, more 
funds can be released for public works and agricultural 

The basis of the agriculture of Chile is the great 
central valley. This lies between the Cordillera of 
the Andes and the Coast Range. It begins at the 
hill of Chacabuco in latitude 33 , and extends to the 
estuary at the head of the Gulf of Ancud known as 
the Bay of Reloncavi, latitude 41 30'. Santiago is in 
the plain at the upper end of the valley. At the lower 
end is the bed of lakes and gulf channels. The central 


valley is 580 miles long, and has an average of 31 
miles in width, though in the northern section it is not 
more than 15 miles across, and at the Angostura de 
Paine in latitude 34 a stone may be tossed from one 
side to the other. The area is approximately 18,000 
square miles. 

In this valley are the chief centres of permanent 
and growing population, as distinguished from the 
floating population of the nitrate provinces. The 
region favors all kinds of farming, both temperate and 
semi-tropical, for the grape, the orange, and the apple 
are found together. It grows the products which 
supply the inhabitants of the whole country, and it 
also has a surplus for export. Wheat and barley are 
regularly shipped to England in steadily increasing 
quantities, the ^250,000 worth of wheat which Great 
Britain received from Chile in 1904 having come from 
this district. Corn, or maize, and linseed also are ex- 
ported, and some wool is sent abroad. The live-stock 
industry is a successful one, but its products are chiefly 
utilized for home consumption. 

The central valley is capable of a very large exten- 
sion of the area under cultivation. The total of land 
given over to the production of the cereals, alfalfa, 
and vegetables, is about 9,000,000 acres. One draw- 
back to increase is the tendency of the land-proprietors 
to keep their holdings intact and to prevent a material 
addition to the number of small farmers. There are 
no vast single estates, as in the wheat-growing regions 
of the United States. But there are many large haci- 
endas, whose owners are content to receive a relatively 
small return from them rather than sell a part in order 
to secure capital for developing the remainder. This 


question enters into the relation of the roto or peon 
to the State, though not in an acute degree. 

When the government and the individual Chilean 
land-owners succeed in bringing a larger area under 
cultivation, it will be by means of the small farmers. 
They will add enormously to the productive resources. 
While the central valley may not be said to have 
anything like the present wealth of the deserts of 
Atacama and Tarapaca, with their saltpetre deposits, 
yet its founts of production are enduring, and they 
will broaden and spread while the nitrate beds are 
being exhausted. This is both an economic and a 
political fact of vast importance to Chile. 

The forest lands in the southern provinces are 
being gradually developed. Here is another source 
of national riches, for timber on the Pacific coast is 
not plentiful, and southern Chile has forests which 
are capable not only of supplying her own demands, 
but also of supplementing the needs of neighboring 
countries. In the Provinces of Arauco, Valdivia, and 
Llanquihue, the exploitation of the native timber has 
caused a lessening of the quantity imported from 
Oregon and California. 

Below the central valley is the territory of Magel- 
lan, stretching to the Straits and across to the Chilean 
section of Tierra del Fuego. It comprises 47,500,000 
acres, a large portion of which is unusually well 
adapted to sheep-raising. At the close of 1904 there 
were 4,250,000 head of sheep in this region. The 
animals furnish a strong, silky white wool, and there 
is some commerce in sheepskins. The wool exports 
range from 120,000,000 to 140,000,000 pounds annu- 
ally. Great Britain and the United States take the 


bulk of the merinos, while France shares with them 
the common and mixed wools. The value of the 
annual commerce in wool, hides, and skins is about 
$2,000,000. In a recent year the estimate was that 
$24,000,000 was invested in new enterprises, chiefly 
mining companies and cattle-ranches in the Magellan 

Grape culture is both a profitable and a promising 
agricultural industry. The capital invested in it is 
estimated at $17,000,000 to $20,000,000 gold. The 
area under cultivation is 60,000 acres, and the vine- 
yards have a production of 1,062,000 hectolitres. In a 
twelvemonth the value of the product was $3,250,000. 
The government encourages the industry by an export 
bounty on wines and grape alcohols. 

Efforts have been made to introduce the cultivation 
of beet root into Chile, and government favor has been 
shown these projects. Yet it is very doubtful whether 
the outcome is worth the forced aid necessary to nur- 
ture the beet-root industry. It is more profitable for 
Chile to follow along the lines of the agricultural prod- 
ucts which do not require a highly artificial stimulus. 1 

1 A different view is taken by Chilean authorities. An article in the 
Boletin de la Sociedad de Fomento Fabril (Bulletin of the Manufacturers* 
Association) stated : 

" The soil and climate of Chile indicate that the sugar industry would 
prosper in the Republic, if properly exploited, not only to the extent of 
supplying the domestic needs of the nation with that important product 
of prime necessity, but also in such quantities as would leave a consid- 
erable surplus for export to foreign markets. The sugar beet is one of 
the tubers that flourish most luxuriantly in the lands of the central zones 
of the Republic. In addition to the natural adaptability of the soil and 
climate of Chile for the growth of this tuberous root, the country also pos- 
sesses deposits of nitrate and guano which are recognized to be the best 
and most appropriate fertilizers in the cultivation of this highly saccharine- 
producing tubercule." 


Agricultural exports, in the decade from 1893 to 
1902, ranged from $2,000,000 to $4,500,000 annu- 
ally. The latter sum seems likely to prove the min- 
imum basis for the future. 

The industrial resources of Chile are mirrored, 
though not with completeness, in the Permanent In- 
dustrial Exhibition which was opened in 1904. This 
covers not only the products of the soil, but also the 
home manufactures that are fabricated either from im- 
ported raw material or from half-manufactured prod- 
ucts brought in to encourage the home industries. 
The Chilean policy is protective both by bounties and 
by duties. The sugar refineries, which import the raw 
cane sugar from Peru, are among the most stable of 
the industries. The flour-mills are also profitable 
enterprises. They grind the native wheat, and have 
a market for the flour for export in Bolivia and Peru, 
as well as farther up the coast. 

The country has about 8,000 industrial establish- 
ments. Among these are 400 engaged in tanning 
and curing hides, 430 in various kinds of wood- 
working, 308 in metallurgy, 268 in chemical products, 
560 in ceramics or pottery, 1,900 in food products, 
1,920 in cloth manufacture and tailoring, 700 in 
building, and so on. Car-shops are maintained in 
connection with the State railways. A disposition on 
the part of foreign capital to engage in textile manu- 
factures has received encouragement, and woollen and 

The duty on the raw sugar is 6.50 pesos, or Chilean dollars, per 100 
kilograms, equal to nearly one cent per pound in gold. The duty on 
refined sugar is about two cents per pound. The output of the refinery 
at Vina del Mar is 53,000,000 to 54,000,000 pounds, much of which is 
exported. This refinery, with a capital of $1,500,000 gold, through a 
period often years, paid annual dividends of io| per cent. 


cotton mills may result. The native labor, judged by 
the experiments, is competent. 

The public works policy has become the programme 
of all political groups, though the Congress sometimes 
is laggard in voting the appropriations recommended 
by the Executive. Railways are its most important 
feature. No chapter in Chile's history is more credit- 
able to her people than the sacrifices made for build- 
ing railways, and nothing shows the national instinct 
better than the perception that was demonstrated of 
the part which railroads play in both the industrial 
and the political development of a nation. In 1905, 
3,100 miles were in operation, with many new lines 
under way. The majority of the lines are owned by 
the government, with the exception of the nitrate roads 
and the Chilean section of the Antofagasta and Bolivian 

This State ownership is at once an advantage and a 
drawback. The policy of government proprietorship 
has made possible the building of links that have 
been of great value in internal development, and that 
will be of greater value when they become joined 
together as parts of one system. The disadvantage is 
in operation. When a Buenos Ayres railroad presi- 
dent was considering the extension of the Southern 
Railway of Argentina through the lower Andes to a 
junction with the Chilean roads, — all of which will 
come some day, — he made inquiries about the earn- 
ings of the Chilean system under government control. 
He was told that they had amounted to $18,000,000. 
That was very good indeed, considering the mileage 
and rolling-stock. " And how much did it cost to 
operate them last year ? " he inquired. " $20,000,000," 


was the reply. This meant that under State manage- 
ment roads which would have paid dividends showed 
a healthy deficit. The deficit is not invariable, for in 
1903 the government railways showed a surplus of 
$1,360,000 Chilean currency. 

This government administration illustrates the evils 
of the use of patronage. The management is expen- 
sive ; there is favoritism, discrimination, losses, unnec- 
essary employees by the hundred. When the national 
policy is matured, and the country has the railways 
which are necessary and which would not have been 
constructed except by the government, the political 
evils can be overcome easily. The lines can be leased 
to private companies under a rental which will in- 
sure profit to the lessees and a steady revenue to the 
government. The State railways have an annual traffic 
of 3,000,000 to 3,500,000 tons of freight, and carry 
from 7,000,000 to 7,500,000 passengers. 

The Chilean aspiration has been shown very clearly 
in the dogged determination with which the longi- 
tudinal line paralleling the coast and the Cordilleras 
has been carried forward. This policy already has 
given a section of the central valley the benefits of 
railway transportation, and in a few years undoubtedly 
the gaps will be closed so that the through journey 
can be taken from Santiago to Puerto Montt at the 
entrance of the Chiloe Archipelago. Also it will bring 
Iquique and the nitrate provinces of the North into 
through railway communication with the capital and 
the South. These northern links will be of marked 
value in reviving copper and silver mining. 

The trans-Andine road, completing the gap from Los 
Andes through the Uspallata Pass to the Argentine 


boundary, when completed, will open a new chapter 
of intercontinental transportation. Promise is held 
out that the line may be in operation by the end of 
1907, but the great spiral tunnel, which is the engi- 
neering device for breaking the back of the Cordilleras, 
may require a longer time. The important fact is 
that after delays of forty years the Chilean govern- 
ment guaranteed capital to the amount of $7,500,000 
an annual return of 5 per cent for twenty years, and 
let the contract. A colossal bronze statue, resting on 
a granite column, the Christ of the Andes, at the very 
pinnacle of the Cordilleras, is a striking monument 
along this railway line. It is just on the boundary 
between Chile and Argentina, and commemorates the 
peace treaty without which the railroad systems of the 
two Republics would not have been joined. The idea 
of the commemorative statue was due to Senora 
Angela de Costa, of Buenos Ayres. The influence 
of this trans-Andine railway on the mutual commerce 
of Chile and Argentina by establishing through com- 
munication between Valparaiso and Buenos Ayres will 
be considerable, but it promises to be even more 
beneficial in bringing the western pampas of Argen- 
tina to the Pacific and to Panama. 

Chilean foreign commerce reaches to higher levels 
with each year. Naturally the nitrates form the bulk 
of the exports, and assure a balance of trade in favor 
of Chile. On this account, by England and Germany 
an advantage is maintained ; but since the United 
States is not a large consumer of the saltpetre, the 
balance of trade is in its favor. For the ten years 
from 1895 to 1904 inclusive, the United States products 
imported into Chile aggregated $41,610,000, while her 


exports to the United States amounted to $26, 100,00c 1 
Farm implements, builders' hardware, machinery, and 
mineral oils composed the larger part of the shipments. 

This commerce is likely to grow to much larger 
proportions in the degree that railway building, mu- 
nicipal improvements, and harbor works are carried 
forward by Chile. A government agent who visited 
Europe and North America in 1905 in connection 
with contracts which were to be let, suggested to Pitts- 
burg manufacturers the formation of a company that 
should give special attention to iron and steel products, 
railway and road supplies, for the Chilean market. 
The commerce is certain to grow after the Canal is 
constructed, because the agricultural machinery, min- 
eral oils, and other products of which Chile is a heavy 
importer, will best be furnished by the United States, 
more especially in view of the cheapened transporta- 
tion. An American bank in Valparaiso, in order to 
make the United States trade independent of Eng- 
lish banking relations, is one of the probabilities of 
the future. 

Chile's dependence on the sea makes foreign trade 
a vital element of her growth and prosperity. She 
has an encouraging future in the development of her 
own shipping. With the hardy marine population of 
the Chiloe Archipelago and the other seafaring popu- 
lation of the coast as the basis, her advantage on the 
Pacific is manifest. She will have in the future a 
much larger share in the coast-carrying trade which 
will result from the Panama Canal. Efforts to run 

1 The figures are on the basis of Chilean export and import valuations. 
The United States Treasury statistics place a higher value on the im- 
ports from Chile, chiefly nitrates. 

"Christ of the Andes 


Chilean vessels as far as San Francisco failed a few 
years ago, because of obstacles which competitors were 
enabled to throw in the way. This was a temporary 
check. The shipping along the coast as far as Van- 
couver will not always be denied her, but after the 
Canal is opened there will be a more pronounced 
advantage in passing through it to the Atlantic, and 
the flag of the Chilean merchant marine will be seen 
in New Orleans and New York. 

The existing navigation has a substantial base for 
developing the maritime commercial movement. In 
a recent year the number of sailing-vessels calling at 
the Chilean ports was 549, and the total registry of 
these vessels was 797,000 tons. Most of them were 
British, the number being 302, and the tonnage 
447,000. After that came Germany, with 92 ships 
and 146,000 tonnage. The United States sailing- 
ships numbered 17, and their aggregate tonnage was 
15,000. Chile had the same number, but with a ton- 
nage of [3,000. 

The steamships numbered 1,255, with a total registry 
tonnage of 2,741,000. Of these Great Britain con- 
tributed 685, whose total tonnage was 1,477,000; 
Germany, 381, with a tonnage of 946,000; the United 
States, 15, with 39,000 ; and Chile 149, with a tonnage 
of 224,000. The Chilean government pays a small 
subsidy to the companies which carry the mails along 
the coast and to and from Panama. The Chilean 
merchant marine consists of 136 vessels, with a total 
registry of 67,936 tons. Next to Chile herself, the 
greatest volume of the coast trading is done by ships 
under the English flag. 

The population of Chile is between 3,000,000 and 


3,100,000. In 1796 an enumeration showed 350,000 
inhabitants. In 18 10, almost at the threshold of the 
struggle for independence from Spain, the number was 
500,000. In 1866 it was estimated at 2,000,000. 
The census of 1895, which was taken with care, 
gave 2,712,000 inhabitants, nearly equally divided be- 
tween town and country. The urban population was 
1,250,000, and the rural 1,472,000. 

Measures for adding to the number of inhabitants 
by means of colonization and other forms of stimulated 
immigration have not given very encouraging results. 
The public men and political economists who ana- 
lyze the causes which prevent the natural increase of 
population from being normal, also find that the arti- 
ficial propagation is unsatisfactory. During the ten 
years ending in 1902 the government spent $> 100,000, 
Chilean money, a year in its colonization efforts, and 
maintained an agency in Paris. The result of that 
work and the expenditure of half a million dollars was 
the arrival of 7,000 persons, some of whom went back 
and many of whom drifted to other countries. During 
the same period the Manufacturers' Association, the 
Foment de Fabrica, secured 2,000 individuals. That 
is to say, in ten years government agency and private 
enterprise did not succeed in bringing 10,000 perma- 
nent immigrants to Chile. 

Yet colonies have not always been failures. The 
German revolutionists of 1848 who settled around 
Valdivia, Osorno, and Lake Llanquihue, took root 
and flourished. With their tanneries and breweries 
they have made Valdivia the industrial centre that it 
is. After the war with Peru the Colonial Department 
sought to establish frontier colonists on the lands south 


of the river Bio-bio and also in the archipelago of 
Chiloe, where cereals grow in spite of the ceaseless rain. 
It is doubtful if large groups of foreigners ever can be 
settled permanently among those islands, but on the 
mainland there is no reason why colonization should 
not succeed. The forest clearings in the South and 
the opportunities for sheep-raising and wool-growing 
should induce an appreciable, immigration in those 

The Chilean government is seeking more especially 
immigrants from northern Europe, Scandinavians, who 
v/ould find the climate cold enough for them but 
much less severe than that of their own country. 
The climate of Chile has its eulogists, and the eulo- 
gies are not undeserved. There are, as the books 
say, the three climates, — the dry heat of the North, 
the tropical warmth of the Central region, and the 
temperate climate of the South. Actually two-thirds 
of Chile might be called temperate, and the South, 
even in the Straits of Magellan, is not frigid, for the 
warm winds of the ocean, not having a whole conti- 
nent but only the tapering end to sweep over, modify 
what otherwise might be Antarctic cold. 

Whether the Boer colonies which were established 
after the war in the Transvaal will spread is uncertain. 
The first colonists were pleased with their surround- 
ings. But there is no veldt in southern Chile, no 
limitless stretch of level country, and the probability 
is that the Patagonian plains and the pampas of Ar- 
gentina will absorb most of the Boers who elect or 
who have elected to leave South Africa for good. 

Hitherto colonization has been conducted by Chile 
as a government project, but it is an open question 


whether better results would not be obtained by mak- 
ing the state ancillary to private enterprise. It also 
may be assumed that universal education in hygiene 
and observance of sanitary principles, along with the 
improvement in the physical condition of the working- 
classes, by lessening the mortality, in a single genera- 
tion would result in a large addition to the permanent 
population through the simple processes of natural 

The foreign debt of Chile in 1905 was ^16,650,000, 
or $222,000,000 in Chilean currency. This debt was 
created under refunding and other laws passed subse- 
quent to 1885. Of the total, 83 per cent is held by 
the Rothschilds and 8 per cent by the Deutsche Bank 
of Berlin, the balance being distributed among various 
creditors. Chile has paid very liberal commissions in 
securing loans, whether they were temporary or for 
refunding purposes. She always has preserved her 
credit, but this credit often has been a too ready 
excuse for further borrowing. 

In the period of unlimited naval expansion and war 
preparations, in spite of the regular income from the 
nitrates, Chile kept piling up her obligations, and, 
abandoning the gold standard, began issuing paper 
notes. The latest issue of $30,000,000 made under 
the law of December 29, 1904, brought the outstand- 
ing paper up to eighty million pesos, the value of the 
peso being 36.5 cents United States currency. With 
the view to getting back to the gold standard, a con- 
version fund had been established, and when this 
paper issue was authorized the gold redemption re- 
serve was close to $13,500,000. The hope had been 
to reestablish the gold basis in 1907, but this law 


specifically fixed the date for the conversion of the paper 
currency at January i, 19 10. The gold reserve is to be 
strengthened from the proceeds of the sale of nitrate 
grounds, the sale of public lands in the Straits of 
Magellan territory, and a reserve of $500,000 in gold 
monthly, which the government undertakes to hy- 
pothecate for the conversion scheme, all of which is 
to be deposited in first-class European banks and in 
those of the United States. To these deposits will be 
added the interest as it accrues. 

The Chilean Minister of Finance, at the time of the 
passage of this law, estimated that on January 1, 19 10, 
the supply of gold would amount to $86,000,000, 
which would leave the government a surplus of 
$6,000,000 after the retirement of the paper notes ; but 
there is no assurance that further issues of currency 
may not be made in the interval ; and this keeps 
foreign capitalists and investors nervous, although, 
since the nitrate taxes are payable in gold, as are also 
the customs receipts, the position of the country is not 
a perilous one financially. 

The basis of further debt on the part of Chile may 
be found in providing funds for the Valparaiso harbor 
improvements and also for the railroad from Arica 
into Bolivia. The latter project and the guaranty of 
the payment of interest on other railroads to be built 
by the Bolivian government, may be considered justi- 
fiable, because these railroads are expected to make 
Chile commercially dominant in Bolivia and to in- 
crease her trade very largely. 

Notwithstanding the conditions which were held 
to justify the country in increasing the amount of 
paper currency, the system, while very profitable to 


the banks and the money-changers, is unequivocally 
bad for the merchants. They have to buy abroad in 
gold and also to pay the customs duties in the same 
manner, while they must sell on a fluctuating paper 
basis. With decreasing naval and military expendi- 
tures, with improving industrial conditions, and with 
widening commerce, Chile should return to the gold 
basis and maintain it. 

After this outline sketch of the resources, industries, 
commerce, and finances of Chile, I am brought back 
to the question of the nitrates. They form more than 
75 per cent of the exports, and they contribute more 
than 85 per cent of the government revenues. Because 
their exhaustion is foreseen and the time calculated, 
does it follow that the Republic rests on quicksand, 
that the foundation will disappear and leave no solid 
national superstructure behind ? One answer might 
be found in an historical review of the growth and 
consolidation of the national life during the seventy- 
five years before the nitrate provinces were acquired. 

Another answer may be found in the newer in- 
dustrial and commercial life on which the country 
is entering. The fertilizers have yet in them the 
means of internal development — roads and railways, 
harbors, municipal improvements — sufficient for a 
century's growth. The central valley, the forests of 
the South, the sheep pastures of the Magellan terri- 
tory and Tierra del Fuego, the coal of Arauco and 
Concepcion, the copper and silver of the northern 
provinces, all have potencies of production while the 
nitrate exhaustion goes on, and their development may 
be contemplated with equanimity while awaiting the 
advance of scientific irrigation to make green at some 


future period the white refuse of the saltpetre beds. 
Closer commercial relations with the neighboring 
countries of South America and wider trade with all 
the world, the expansion of the native merchant 
marine until it becomes an international factor in 
the ocean transport trade, offer the natural outlet for 
the national energies while assuring the national in- 
tegrity. With these economic forces recognized and 
given their proper sphere, the collisions and the cross- 
purposes of domestic politics need have no deterrent 
influence on the industrial future of Chile. Agri- 
culture, mining, and trade are better for her than 



Old Spanish Trail from Argentina — Customs Outpost at Majo 

— Sublime Mountain View — Primitive Native Life — Sun- 
beaten Limestone Hills — Vale of Santa Rosa — Tupiza's 
People and Their Pursuits — Ladies' Fashions among the Indian 
Women — Across the Chichas Cordilleras — Barren Vegetation 

— Experience with Siroche, or Mountain Sickness . — Personal 
Discomforts — Hard Riding — Portugalete Pass — Alpacas and 
Llamas — Sierra of San Vicente — Uyuni a Dark Ribbon on 
a White Plain — Mine Enthusiasts — Foreign Consulates. 

1 JOURNEYED into Bolivia, the heart of South 
America, from northern Argentina with pack ani- 
mals over the old Inca and Spanish trail. The Pacific 
coast routes for reaching the imprisoned country are 
by the railroad from Mollendo to Lake Titicaca, and 
then across the lake and by the little railway from 
Guaqui to La Paz ; by the railroad from Arica to 
Tacna, and from Tacna by mules to Corocoro, whence 
a stage may be had to La Paz, 60 miles farther on ; 
and by the railroad from Antofagasta to Oruro, 575 
miles, and then by stage to La Paz, 160 miles. 

The ancient and historic route from the Atlantic 
is the one that is followed in the prolongation of 
the Argentina Railway lines, and in joining the new 
Bolivian links so as to form a complete section in 
the Intercontinental or Pan-American system from 
Buenos Ayres to Lake Titicaca. From Jujuy, 
1,000 miles distant from Buenos Ayres, up through 


northern Argentina, the course is in a double funnel 
along the great canon, or quebrada, of Humahuaca. 
The trail widens in the valley of Tupiza, and then 
contracts from Tupiza west and north into difficult 
mountain passes through the Chichas Cordilleras and 
the sierras of San Vicente, until the Altiplanicie, or 
great Bolivian table-land that lies between the granitic 
Oriental, or Royal, Cordilleras and the volcanic Occi- 
dental, or Western, Cordilleras, is reached. 

The boundary between Argentina and Bolivia is 
the Quiaca River. The town of La Quiaca on the 
Argentine side is the frontier custom house. On 
the Bolivian border is a big ranch with a row of 
willow trees. There is a fair road through an alter- 
nation of gravelly mountain-sides and rounded tops. 
The first Bolivian settlement is Majo in the valley, 
an adobe village of a few hundred inhabitants. This 
place is the customs outpost. Majo has a govern- 
ment post, or inn, which is called a tambo. The tambo 
consists of a corral for the animals and an adobe hut 
for the accommodation of strangers. Lodging is free. 
The traveller spreads his blankets on the earth floor 
or on the mud benches along the wall. The inn- 
keeper, who is a government official, provides him 
with food. I got chicken, rice, and bread, which was 
luxurious feasting after ten days' hardships. Fodder 
was supplied the animals at a fair charge, and a smithy, 
which was part of the inn, was free for the use of the 
arriero, or muleteer. 

It was September when I was at Majo. At five 
o'clock in the afternoon the thermometer marked 7 6° 
Fahrenheit, and at seven o'clock, when the sun had 
gone down, it marked 46. 5 , a noticeable change. At 


mid-day at this season the temperature was about 86°. 
In the early morning before sunrise I had broken a 
film of ice on one of the rivulets in a sequestered 

But Bolivia is not seen from the little valley in 
which the hamlet of Majo lies. After two hours 
of going down and up steep hills the eminence on the 
edge of an extensive gorge is reached. It is the first 
view of the Royal Andes and their sierras. A sublime 
sight it is. The change from the arid, half-desert 
scenery is startling. The mountains in the foreground 
lie in irregular, transverse black and gray masses, and 
through the mists the fleecy peaks and pinnacled preci- 
pices are visible. The dominating one is Guadalupe, 
18,870 feet above sea-level, the Pike's Peak of Bolivia. 
Closer at hand the sierras are covered with some 
appearance of vegetation, — pale green cacti and russet 
brown thorn-bushes or acacias. I followed the ravine 
down along the banks of the dried-up river, which 
was bordered with pepper trees and willows. In this 
valley are a number of attractive small farms. After 
leaving it there is another hill climb. Yuruma, the 
hill village, is a dilapidated collection of adobe cabins. 

Genuine Bolivian life, the primitive and patriarchal 
existence, I encountered in the villages of Nazarene 
and Suipacha. They lie on either side of the Grand, 
or San Juan, River, which is easily forded in the dry 
season. It was a rural scene that would have delighted 
the poet or the philosopher who wants to go back to 
Nature. Nothing more tranquil in all the world than 
this secluded nook in the Andes. The women were 
washing clothes in the streams, the men and boys 
were working in the fields, the flocks of sheep and 


cattle grazed placidly in the valley and on the hill- 
side, and everybody had a respectful greeting to 
the stranger, sometimes in Spanish, sometimes in 
the Quichua tongue. The donkeys wandered about 
bearing clay water-jars and apparently without a 
driver until a small and wrinkled old man with most 
wonderfully patched and brilliantly colored trousers, 
screamed to them, and they stopped where a customer 
waited. The cabins were of adobe, or unbaked brick. 
Some were quite neat and were half hidden in gardens 
surrounded by mud walls covered with thorn-bushes. 

I never met so many very old people as in these 
two primitive villages. Far from the carking cares 
and ambitions of the world, they follow their unevent- 
ful course until the sands of life literally run out. In 
front of one cabin was an old woman crooning over 
her bowl of porridge. She appeared to me a vitalized 
mummy. I reined my mule before a dwelling a little 
farther on and asked, " What is the age of la viejicita 
(the little old woman)?" "We don't know, sir," 
replied the occupant, civilly. " We think she is more 
than one hundred and fifteen years old. Her great- 
grandchildren say she is one hundred and twenty-five." 
I might doubt the family records of the crone as pre- 
served by the great-grandchildren, yet seeing her it 
was easy to believe that her life may have spanned 
three centuries, — born in the late years of the eight- 
eenth and stretching through the nineteenth into the 
twentieth, — for she certainly was more than one hun- 
dred. When the Bolivian census was taken a few 
years ago, the enumerators reported 1,261 persons 
whose age passed the century mark, and many of 
these centenarians dwelt in this San Juan valley. 


The gold-hunters at various times have ruffled the 
placid life of the inhabitants. A ledge of quartz 
cropping out from the side of the sierra near Suipacha 
has been attacked viciously, but more promise has 
been held out by the placer yields. Its sands are not 
all golden, yet they have yielded enough to encourage 
the investment of a large amount of capital in com- 
panies formed for the purpose of dredging the river- 
bed. These enterprises have their headquarters in 
Buenos Ayres. During my journey I found the 
people impatient for the arrival of the heavy dredg- 
ing machinery which was at the seaboard awaiting 
transportation. It arrived later. 

After leaving Suipacha there was a very hot and 
dusty hill climb of three hours, although most of it 
was along a fine piece of mountain highway, really a 
splendid triumph of road engineering. The hills all 
around here seemed to be limestone, and the sun beat- 
ing on them created the most intense heat that I 
experienced anywhere. In the morning at sunrise 
my thermometer registered 50° Fahrenheit. In the 
early afternoon in the midst of these limestone cliffs 
it marked uo° Fahrenheit. This was 15 degrees 
higher than at any other point in the journey. I 
might have questioned the correctness of the ther- 
mometer, but its previous and its subsequent registra- 
tions I was able to verify, so that there was no reason 
to doubt its verity in registering this locality. 

But though the glaring sun and the choking dust 
made the afternoon very uncomfortable, there was com- 
pensation. It was almost dusk when we — myself, 
the muleteer, and the pack animals — descended 
into the vale of Santa Rosa and found it gloriously 


restful. A model ranch spreads through the valley. 
The bed of the river is among spur cliffs and broken 
mountain walls on either side, out of which plunge 
miniature Niagaras. The stream is bordered by wil- 
lows. It narrows until its course is forced through 
a cliff which rises sheer in front to the height of 700 
or 800 feet and is known as the Angustora, or Narrow 
Way. The needle-point chasm made by the river 
has been enlarged by artificial means, and the narrow 
way is wide enough for ox-carts. 

After the Angustora the course broadens again into 
the valley. The stream is very crooked and has to be 
forded often. At this season the fording was not diffi- 
cult, but in January and February, when the rains come, 
the only passage is along a trail well up the side of the 
precipice, for the river-bed is a tumultuous torrent. 

Tupiza lies in this vale of Santa Rosa, the brook 
being an affluent of the San Juan and sometimes called 
the San Juan. I entered the village by moonlight. 
I left it early one morning by starlight. The night 
of my arrival fourteen hours continuously in the 
saddle had wearied me greatly, yet the physical sen- 
sation disappeared in an instant on entering the beau- 
tiful valley, bathed as it was in the soft moonlight. 
When taking a last look at it, there was the same 
impression of charm. The river is fringed by droop- 
ing, feathery willows of the softest and most velvety 
green. They seem to be taking a perpetual bath in 
the dews. There are also the pepper, trees. After 
a long desert ride the sober verdure of these trees 
is always refreshing. It is a harbinger of revivified 
Nature, but here in contrast with the glistening green 
willows they are the merest drabs. 


The mountains which shut in the valley are brown, 
with granite flanks exposed ; and the sunsets — ah ! 
the artist would have to penetrate this lovely region 
to see whether the miracle of silver gray changing into 
impalpable azure and then flaming into red prairie fire 
can be transferred to canvas. 

Tupiza is the most important place in southern 
Bolivia. It is the gateway north, south, east, and west. 
It is 9,800 feet above sea-level. The town has 5,000 
inhabitants, and is the head of administration for the 
department. The church edifice has twin towers and 
a blue front, with much gaudy and gingerbread orna- 
mentation inside and out. The government build- 
ing, which includes the custom house, post-office, and 
telegraph office, is more tasteful. It is of two stories, 
with brown front and with arcade windows. There 
are a few two-story houses with narrow window bal- 
conies, but the dwellings are mostly of one story, with 
sloping grass-thatched roofs and whitewashed or dark 
blue fronts. They have square inner courts, or patios , 
and are without windows opening on the streets. As 
the street door is kept closed, there is complete seclu- 
sion from outside life. 

The plaza is ornamented with feathery willow trees, 
under one of which in the heat of the day the public 
business is transacted, the desks and chairs being 
moved out from the government building. I watched 
the process for a couple of hours one day, and found 
it a not unpleasing picture of local and patriarchal 
administration. A fountain in the centre of the plaza 
at all hours is thronged by the men and women with 
their earthen water-jars, gossiping and quarrelling. 
There are many small shops for the sale of fruits, 


vegetables, and gaudy handkerchiefs. The women 
venders exercise squatter sovereignty on every street 

Ladies' fashions are of so world-wide an interest 
that I digress to describe them as they were seen at 
Tupiza, as I had seen them in the primitive villages 
of Nazarene and Suipacha, as I saw them afterward at 
Uyuni and other places, including the capital. 

The prized possession of the Bolivian Indian woman, 
and her chief pride also, whether she is pure Indian 
or cho/a, is her petticoat. Her dowry is in this gar- 
ment. Like the Dutch woman of tradition, she carries 
her wealth about her. These petticoats are of all the 
colors of the rainbow and divers other hues not found 
therein. I first noticed them at Nazarene, and re- 
marked the love of color, which must be inborn, for 
the garments were of purple, violet, fiery red, crimson, 
scarlet, subdued orange, glaring saffron, blue, and 
green. They were very short, reaching barely below 
the knee, and no difference was observed between 
childhood, maidenhood, matronly middle life, and 
wrinkled old age. Glancing from my window in 
Tupiza, I thought it was a parade of perambulating 

The more well-to-do of the Indian women have 
stockings and shoes, but the love of color does not ex- 
tend to the hosiery. Most of this wear is of ordinary 
brown or black. There is, however, pride and some- 
thing like social distinction with regard to the foot- 
wear. I was amused on seeing the number of russet 
gaiters. Later at Uyuni I remarked that the prevail- 
ing fashion was high-heeled French gaiters, but in 
Tupiza and the other villages the extreme was not so 


great. Nor does the possession of the shoes make 
stockings necessary. Many of the Indian women with 
their plethora of petticoats apparently consider the 
acme reached if they can also have shoes, and do not 
fret themselves over hosiery. 

These women have a habit which the bashful 
traveller does not at first understand. When he sees 
one of them, calmly removing a petticoat, he is apt to 
turn away, but he need not do so. It may be that 
the advancing heat of the day has caused the wearer 
to discard the outer skirt, but more likely it is the 
vanity of her sex, and the desire to make her sisters 
envious by showing what is beneath, for each new 
vesture disclosed is more brilliant than the one which 
overlapped it. I sat in the plaza at Tupiza and 
watched two Indian women try to make each other 
envious. The first one removed the outer petticoat, 
which was of purple. This divestment disclosed an- 
other garment of blazing red, and after that came a 
brilliant yellow. The other woman started with a 
green petticoat, and gradually got down to a mixture 
of blue and yellow. By that time I had begun to fear 
for the consequences, and made a pretence of turning 
my back by strolling to the hotel. 

From Tupiza to Uyuni is three days' hard riding 
with horse or mule, and usually it is nearer four. The 
region is graphic in its grandeur of conical peaks, 
Chorolque, Guadalupe, Cotaigata, Ubina, eternally 
snow-covered, which hold beneath their granite domes 
a mass of mineral wealth that is for the centuries. 
The trail by which one passes is along the torn flanks 
and through the harsh passes of the Chichas and the 
San Vicente ranges. 


The morning we left we followed the river-bed, 
passed some good farms and mud huts, and continued 
through a pasturage on which were grazing goats, 
llamas, and sheep. The vegetation was of yellow 
mustard flowers in bloom, pale cactus stalks, brown 
thorn-trees, and clumps of russet grass. There are a 
big, gaudy ranch-house, which looks like an imitation 
French castle, and an ornate little chapel at the head 
of the valley before it narrows into a chain of crooked 
gorges. The mountains seem to lie squarely across 
the way in irregular masses, like gigantic wedges, but 
there are abrupt hatchet gashes in the sides and many 
defiles, crevasses, and chasms. 

A few miles from Tupiza the geological formation 
is very curious. At a distance the appearance is that 
of an old city of crumbling brown cathedrals, towers, 
buildings, and solitary sentinels. The sandstone for- 
mations resemble brown instead of crystal stalagmites. 
Some of the figures are strikingly grotesque. It is 
really a series of crenellated mud mountains which 
have been worn by the atmosphere and the water cut- 
ting down and washing away the earth. 

The first stopping-place is the hamlet of Ingenia. 
This place has a tambo and a mud chapel and church. 
The Indian natives were blear-eyed, dirty, and the 
most repulsive that I met anywhere, but they were 
devout and hospitable. They escorted me to the 
chapel to see the image of the Virgin, which had some 
special history, and they got some fresh eggs for me. 
The altitude of Ingenia is 10,200 feet. I set out in 
the early morning with my pack animals and muleteer, 
all of us in ill humor because of a bad night's enter- 
tainment. The day's journey to Escariano, the next 


lodging-place, was not a long one. Beyond Ingenia 
the river course is narrow, and allows no room for 
ranches or even farms of the ordinary size, though there 
are some pasturage and a weedy kind of grass, scrub 
fir, or juniper. I was surprised at the number of quail 
which started up from every bush, and also at the 
variety of song-birds that hardly would be looked for 
in a treeless country. 

Two or three hours from Ingenia the thread of the 
trail along the margin of the ravine narrows until it 
is not possible for animals or persons to pass. On 
entering the long canon it is necessary to call out and 
make sure that no one is coming from the opposite 
direction. The echoes rumble through the gorges 
and finally die away. If no answering call is heard, it 
is safe to go forward along the edge of the sloping 
precipice. Sometimes tropas, or droves of burros and 
llamas, get into this gorge from both entrances, and 
then there is a controversy, and also a difficulty about 
backing out until space can be found for passing. 

The canon opens into a circle of slaty limestone 
hills, which have to be climbed and descended with 
considerable care. There are some white cactus bulbs 
with yellow flowers, and also in this locality some 
abandoned mine shafts. The cost of fuel and of freight 
transport made it necessary to close the mines until a 
railroad shall be built. 

An incident of the day is thunder and a threatened 
rain. A ragged purple curtain hangs over the summit 
of Guadalupe, but that is far away and the clouds pass. 
They are followed by a soft wind which grows almost 
into a gale. 

These winds are said by the Indians to cause the 


siroche y which is the dread both of the natives and of 
travellers. Some authorities claim that the illness is 
due to the presence in the earth of minerals, which are 
exhaled like gases and poison the atmosphere. I had 
been warned especially against this sickness when 
crossing the sierras between Tupiza and Uyuni, but 
during my travels in the Andes I experienced only 
one attack of siroche, and this was before reaching 
Tupiza. It had been a long morning climb and ride 
across sandy plains and among the cactus and fir 
underbrush. Coming up gradually from the sea- 
level and by slow stages, I had not felt any serious 
apprehension, though somewhat troubled by a neu- 
ralgic headache and by just the appearance of bleeding 
at the nostrils. 

That morning the wind was blowing so softly that 
it seemed to cradle itself. A feeling of intense de- 
pression came over me. It was purely mental, because 
the day had not advanced far enough for the physical 
fatigue to manifest itself. I was out of temper, and 
my nerves were on edge. At noon, taking the obser- 
vation of the temperature by means of a Centigrade 
thermometer, I found myself in a hopeless muddle in 
trying to reduce it to Fahrenheit. The method was 
absolutely clear in my mind, — cc divide by 5, multiply 
by 9, add 32," — but at every calculation the result 
was different, though I was certain I was following the 
rule. Finally I turned to the muleteer and asked him 
crossly, " Loreto, what *s the matter with me ? " " It 's 
the siroche y sir," he explained. cc The wind is very bad 
to-day, but if you can keep on for a few hours we '11 be 
all right." Then he looked at me a little suspiciously 
and said, " I don't think we had better stop here." 



I had no desire to stop there under the savage sun, 
while the wind was forming white mantles of sand on 
the fir bushes, and told him we would go on. We 
kept on, and I began to feel myself again, though for 
a period of perhaps six hours I was in a condition of 
collapse similar to that which I often had experienced 
following attacks of sea-sickness. In my own case, 
however, there was none of the nausea which accom- 
panies that distressing malady, and which with most 
persons is also an incident of siroche. My muleteer's 
fear was that I would insist on stopping or on turning 
back. He had had that trouble with two or three 
persons whom he had guided over the mountains, 
and, as he told me, they had given him a great deal 
of worry by their whims. 

Having had this attack, I was a little apprehensive 
with regard to crossing the punas, or table-lands, from 
Tupiza to Uyuni, and I could see that my arriero also 
was watchful. But I felt not the slightest symptoms. 
Mining engineers who make that journey two or three 
times a year told me that they always suffered from 
the siroche. Animals likewise suffer from it. The 
horse is of little use in these altitudes, and the mules 
are not immune. My own pack animals gave out 

My greatest annoyance was from the blistering and 
bleeding of the lips due to the dry wind. The natives 
grow expert enough to save themselves by means of 
scarfs while riding, but I found that this method gave 
me no protection. My lips were swollen unnaturally, 
and local applications did not reduce the swelling or 
the pain except temporarily at night. It was weeks 
before they became normal, and this I found was the 


gravest inconvenience in traversing the punas. My 
nerves also were under intense strain. That tension 
is unavoidable so high up, but it is something that 
gradually can be overcome. After living a month at 
an altitude of 12,000 to 14,000 feet, I experienced little 
annoyance from keyed-up nerves. 

The increased heart movement is something which 
no one can escape, and it varies only in degree accord- 
ing to the individual. Jogging along comfortably on 
the back of a mule, the accelerated action is not appre- 
ciated, but let the traveller get off to rest the animal 
by walking and he quickly discovers the limit of his 
exertion. In my own case I found it easier to climb 
the hills afoot than to descend them, the heart appar- 
ently pumping with more regularity on the up-grade. 
But at night, after a hard day's travel, on lying down 
to sleep it would be half an hour to an hour before 
the trip-hammer beating would lull itself away into 
slower and more regular palpitations. 

From Escariano to Tambilla is a wearying ride. 
The course is across gorges and chasms, up the dry 
river-bed, then down for a good many hundred feet 
and again up into white plains covered with scrub. 
The longest climb is up the corkscrew height of 
Portugalete. It would be not only cruelty, but physi- 
cal impossibility, to surmount this summit on the back 
of a mule, and I trudged it at an even pace with the 
panting pack animals. The pass or gateway of Por- 
tugalete is 14,137 feet above sea-level. Through this 
pass the railroad will wriggle its way. 

After the divide was reached the descent was fairly 
steady, though abrupt. Guadalupe was in sight part 
of the day, and there were also glimpses of other peaks, 


snow-covered, while in some of the transverse gorges 
which the sun did not penetrate I saw the perpetual 
ice and snow.- I stopped two or three times to gather 
a handful of snow, and then climbed back on the mule, 
passing in a very brief space of time from temperature 
below freezing to 90° or 95° Fahrenheit. On this 
slope were pasturing many alpacas and other sheep as 
well as goats and llamas. 

During that long day we passed just two human 
dwellings, adobe huts, and reached Tambilla after 
nightfall. Tambilla lies in a valley, but its altitude is 
12,900 feet. The Indians who kept the tambo were 
very indifferent to our comfort. They were having 
some kind of a celebration, and at first professed not 
to understand Spanish. As the arriero knew a little 
Quichua, he went after them in the Indian vernacular, 
and I swore some Spanish oaths, which were not nice 
but which brought out sullen rejoinders and the prom- 
ise of something to eat. This was prepared in time, — 
the usual chupt, — but having seen its preparation, my 
stomach revolted, and I went to bed after partaking 
of hot coffee and crackers. During the night a freight 
train arrived, burros laden with dynamite for the 
mines, and I felt satisfaction in hearing the freighters, 
all of whom were natives, take possession of the sleep- 
ing quarters of the inmates of the tambo. 

It was a relief to get away in the early morning 
long before sunrise. The sun disclosed the edges of 
a vast mountain plain, with sand-dunes and scrub 
breaking its monotonous stretch and a rim of chalk- 
white mountains enclosing the whole basin. This was 
the Sierra of San Vicente. Again I noticed the pres- 
ence of both quail and song-birds. About noon we 

Bolivian Indian Women Weaving 
Aymara Indian Woman and Child 


reached a bend in the dry river-bed and even a rivulet 
of water. A ruined cabin and a corral fallen into 
disuse were here. In front were two graves marked 
by stones and a rude cross. My muleteer mused a 
moment. He pointed to the cabin, then to the 
graves, and shook his head. cc I was here a year ago, 
Senor," he said, "and they [pointing to the graves 
as though he could see their tenants] were there 
[pointing to the cabin] then." 

The afternoon was a gradual but steady climb among 
vast sheep pastures which were still peopled with many 
flocks, although nearly all the huts had been aban- 
doned by their human dwellers. Toward evening after 
another long ascent we crossed an easy gradation of 
summits and then down to Amachuma. It is 12,444 
feet above sea-level. .The Indians at Amachuma were 
indifferently hospitable. At first they professed igno- 
rance of any language except Quichua, but later, when 
the government innkeeper appeared, we got passable 
accommodations, one of the mud benches along the 
wall being cleared of the dogs and the natives in order 
that I might spread my blankets. 

From Amachuma the next morning we rode for two 
hours up and across the chalk-white hills, and then a 
dark ribbon forked out on a vast plain below. <c That 
is Uyuni," said Loreto, my muleteer, simply. It lay 
against the horizon like a frozen sea. For the first 
time in weeks Loreto became enthusiastic. " There 
[to the north] is Oruro ; there [to the south] is Anto- 
fagasta ; there [to the east] the Potosi silver mines ; 
here, Huanchaca silver mines ; but, Senor, there is no 
water in Uyuni for my mules. I shall have to lead 
them back here to-night." 


Uyuni is a waterless oasis on the salt pampa. 

Two hours descending through the white sand and 
scrub and we were on the outskirts of the place. The 
most prominent spot which we had seen proved to be 
the cemetery. The town is a staked, plain kind of 
settlement, without shrub or tree. The railroad yard, 
enclosed by a corrugated iron fence stockade, takes in 
most of the municipal territory. Caravans of llamas 
and droves of burros and mules filled the streets. 
Much of the freighting is done by the llamas. There 
are many small shops and several very extensive ware- 
houses and supply stores. 

Uyuni is an outfitting and shipping centre. It is 
on the edge of one of the most productive and varied 
mineral districts in Bolivia. In 1885 tnere was almost 
no settlement, but the development of the Huanchaca 
and the other mines made a town necessary. Huan- 
chaca is nine miles away on the railroad spur. Though 
the company a few years ago was compelled to spend 
a large amount of money in pumping out the Pulacayo 
mines, the output was diminished only temporarily. It 
furnishes the bulk of the freight down the railroad to 
the coast at Antofagasta. 

Everybody in Uyuni is an enthusiast on mines. I 
felt myself in Colorado or the Black Hills when the local 
judge and a party of citizens came to welcome me. The 
judge drew a rough map of the district. " Here," 
he said, cc is tin ; there, gold ; yonder, silver; over there, 
copper ; out this way, borax ; off here, bismuth ; this 
way, lead ; a little beyond, antimony." He and his 
fellow-citizens were very anxious for the railroad to be 
built to Guadalupe and Tupiza, so that the mineral 
industry could be assured of transportation facilities. 


In strolling about I observed all the characteristics 
of the native Indian race, and of the cholos. The fond- 
ness of the women for bright petticoats and French 
gaiters I have recounted. It affords a lesson to the 
political economist by showing that artificial wants can 
be created and goods sold in remote communities. 
Not only were French gaiters in demand, but gaudy 
handkerchiefs for head-dresses and also much jewelry 
that was not gaudy. Many of the women had finger- 
rings and ear-rings of gold. They appeared superior 
to the men, who are given to imbibing alcohol. But 
I would not be too censorious. I had seen these 
men in the desolate, lonely passes and on the dreary 
sand-plains, and was not sure, if my life from New 
Year's to New Year's had to be passed in the same 
way, that whenever I got into Uyuni with a chance 
for human companionship, I also would not get 

Uyuni is intensely cold, lying, as the town does, at 
an altitude of 12,100 feet under the snow mountains 
which send down their icy breath, and on the salt 
plains which, when the rays of the sun are off them, 
are scarcely less chilling. The legend told every new- 
comer is of going to bed with a bottle of hot water 
to keep the feet warm, and waking up to find the 
glass in fragments and the ice retaining the perfect 
form of the bottle. I did not have this experience, 
but in September, which is in the beginning of Spring, 
the cold was penetrating enough to make me believe 
the story, 

I noted on Sunday several foreign flags flying over 
various consulates ; and this was a reminder that Uyuni, 
through its commercial and mining interests, is a kind 


of international centre. The Italians, French, Ger- 
mans, and Chileans have the largest interests among 
the foreigners, though a fair proportion of the business 
is in the hands of Bolivians. Some of the foreigners 
originally came over the trail from Argentina. More 
of them followed the routes of travel from the Pacific. 



A Hill-broken Table-land — By Rail along the Cordillera of the 
Friars — Challapata and Lake Poopo — Smelters — Spanish 
Ear-marks in Oruro — By Stage to La Paz — Fellow- 
passengers — Misadventures — Indian Tombs at Caracollo — 
Sicasica a High-up Town, i/f,ooo Feet — Meeting-place of 
^uichuas and Aymaras — First Sight of the Famed Illimani 
Peaks — Characteristics of the Indian Life — Responsibility 
of the Priesthood — Position of the Women — Panorama of 
La Paz from the Heights — The Capital in Fact — Cosmo- 
politan Society. 

THE Altiplanicie, or Great Central Plateau, be- 
cause of its mineral riches, was called by the 
geographer Raimondi a gold table with silver legs. 
Once the bed of a vast inland sea, the table-land now 
forms the Titicaca basin and lies between the Oriental 
and the Occidental Cordilleras. Its surface is broken 
by many conical hills and small sierras, supposedly 
the result of volcanic eruptions, yet it comes within 
the definition of level country as level country is 
understood in the Andine regions. The southern 
zone of the Altiplanicie has been aptly described as 
a solid cape of salt. 

From Uyuni, in the lower corner of the great plain, 
the railway skirts along the mountain range known 
as the Cordillera of the Friars. The road crosses the 
salt pampas and winds among the foothills and along 
the Marques River into agricultural lands, chiefly 


grazing, with pasturage for some cattle, donkeys, and 
llamas, and many sheep. There are a number of vil- 
lages, always with a little church in the centre. The 
September day on which I took the trip the people 
were making a romeria, or pilgrimage, from hamlet 
to hamlet, to celebrate one of the numerous religious 

During the first three hours weather changes were 
swift and sharp, — heavy clouds, thunder, the first rain 
I had experienced for weeks, a whirling dust-storm, 
thunder again with looped lightning, pelting hail, and 
finally blinding snow. My fellow-passengers were 
Bolivian business men and their families, and English 
and German mining superintendents. An excellent 
breakfast was served in the station at Sevaruyo. 

The principal town on the line is Challapata, near 
the borders of Lake Poopo. Challapata is a starting- 
point for Sucre. Sucre is the old capital of Bolivia, — 
an historic city and a very rich one, lying in a fertile 
valley but very remote from the highways of travel. 
Few foreigners or natives in Bolivia know how to find 
it. The most confusing directions are given in re- 
gard to reaching it. A trail or cart-road of a very 
hard kind to travel runs from Tupiza to Sucre, and 
in La Paz I was gravely told that to get there I 
would have to go to Tupiza. Other directions are 
as vague. The shortest way from either La Paz or 
from the coast is to proceed to Challapata and then 
procure mules to Sucre, though for two days the jour- 
ney may be followed by means of a stage or similar 

Lake Poopo is a teacup beside a soup-tureen in 
comparison with Lake Titicaca ; yet it receives the 


waters of that lake, which is not an evaporating pan, 
through the Desaguadero River, and then loses them 
in the Laca-Amra, a disappearing and reappearing 
stream. Only one gallon in a hundred of the water 
drained into Lake Poopo by the Desaguadero is 
carried off by other streams. The Titicaca current 
is 23.73 metres per minute, and the volume of the 
Desaguadero is 4,822.5 cubic metres per minute. 

From Poopo on to Oruro I noted a succession of 
smoke-stacks from the smelters, and very apparent 
evidences of the mining industry. After that it was 
all mine sights and mine talk. There is a large 
foreign colony, which includes Yankees, Englishmen, 
Germans, and Chileans. The town is a bare sort 
of place, with the shafts gaping from the mountains 
all around. It has a population of 10,000, a news- 
paper, two banks, and some extensive commercial 

Oruro is an old town, and still shows many Span- 
ish ear-marks. The Jesuit chronicles say that in 
the height of the mining fever, in the seventeenth 
century, it had 70,000 inhabitants. The streets are 
narrow, and the buildings have balconies and over- 
hanging eaves. The local administration is progres- 
sive, and the plaza is an evidence of local public 
spirit. It has a fountain in the centre, and some ef- 
fort at adornment has been made by fencing in the 
flower-plats. The pilgrimage of women and children 
to and from the fountain with their water-jars is an 
endless one. There is a military garrison and a 
Cabildoy or municipal headquarters. In the market 
are the women venders, decked out in their brilliant 
petticoats, selling onions, fruits, fish, rock salt, and 


the other commodities of humble life. Here, as in 
Uyuni, I observed many kindly and intelligent faces 
among them, and they seemed to me superior to 
the men. The latter are the cargadores y or burden- 
bearers. They travel around with their backs bent, 
pedler fashion, even when they have no burden. 

Oruro's climate cannot be made a subject of local 
pride. It is raw and rainy, with snow in the morning 
which melts quickly under the sun. The mean average 
temperature as I gleaned from the local records is 43° 
Fahrenheit, but in the month of November the ex- 
tremes are 68° and 34°. An ordinary year has 54 
days of rain, 8 days of heavy snow, and 52 days of 
sleety winds. The mineral resources of the sub- 
Andine region, of which Oruro is the centre, com- 
pensate for its lack of genial temperature. The most 
important of the mines is the San Jose, which pro- 
duces both tin and silver. 

La Paz by the stage route is 160 miles from Oruro. 
When the railroad is completed, the distance will be 
shortened a little, though the same general course will 
be followed. I left Oruro one September morning 
in the diligencia. The transportation had been con- 
trolled by a pair of Scotchmen, and it was gener- 
ally praised for the service, but they turned it over to 
local management and then there was nothing to 
praise. We had a dozen passengers, though only 
room for ten. They included a Peruvian gentleman 
and his Chilean wife ; two Chilean rotos, or rough-and- 
ready workers who were going to La Paz to take jobs ; 
a party of Italian pedestrians who walked in this 
manner; a German drummer; a native merchant, 
and myself. The route followed the pampa along 


the edge of the mountain range, and as there had 
been local snow-storms the regular line of white 
silhouettes glistening in the sunlight presented a most 
exquisite sight. But the road was very heavy, and our 
six mules had difficulty in pulling the stage from one 
mud hole to another. 

At noon we were mired. It rained and hailed 
throughout the afternoon. One of the Italians, after 
a long parley with the driver and the Indian postilion, 
took a mule from the traces and started for the ham- 
let, which lay eight miles farther on, to see if means 
could not be found for transferring us. 

About nine o'clock through the darkness we heard 
shouts, and found that a carreta, or two-wheeled cart, 
with four mules had been sent to our rescue. No 
promise was held out to us of reaching the village, but 
the stage was so uncomfortably crowded that some of 
us felt bound to make room for those who preferred 
to remain. We clambered out, and the outrider took 
us on his shoulders and waded through the mud till 
he was able to drop us into the cart. He had been 
picked up somewhere along the way. Without him 
we would have had to pass the hours till morning in 
the open carreta. The wind was biting, and though 
wrapped in heavy overcoats and blankets, we could 
not keep the chill from our marrow-bones. 

The night was so black that nothing could be seen 
ahead except the moving silhouette of the Indian 
guide. I learned on this occasion of the endurance 
of this class of natives. Our postilion was barefoot, 
clad only in thin cotton trousers and some kind of 
shirt, yet he plunged through the ponds, waded the 
creeks, and marked out a course for the mules, urged 


by their hoarse, screeching driver, to follow. When 
they got mired, he was at their heads or at their heels, 
yelling at them in the Aymara tongue with the hearti- 
ness that a muleteer on the Western frontier will put 
into his coaxing of the same animals. After seeing 
him set the pace, I could readily understand how these 
men could travel all day on foot and keep the animals 
going at a good pace. Two or three times we thought 
we were hopelessly lost, but at last he brought us into 
the village of Caracollo and to the tatnbo, or inn. 
The breakfast had been waiting since eleven o'clock in 
the morning. We sat down to it at a quarter of an 
hour before midnight. After enjoying the repast we 
went to bed commiserating our companions who were 
huddled together in the stage somewhere back on the 

The next morning I made a little study of native 
life as seen at Caracollo, chiefly in the plaza, which 
was more in the nature of a market-place. It was 
under water, but the Indian women were squatted 
about selling their wares with stoical indifference to 
personal comfort. The priest was fat, good-natured, 
and more intelligent than others of his class whom 
I met. He told us that the Indian tombs or tomb 
dwellings which we saw on the edge of the village 
were at least four centuries old and were still ven- 
erated by the natives. I strolled up the hillside to 
have a closer view of them, and found that they are 
now put to baser uses. The veneration of the natives 
apparently is shown by finding the shady side in order 
to take a snooze at mid-day. Half a score of the 
Indians were enjoying their siestas. 

The tombs are oblong in form, from six to twelve 

Scene in the Plaza at Oruro — Ancient Tombs at Caracollo 
Primitive Methods of Tin-crushing 


feet high, and are hollow. Some are open at the 
top, but more are closed and have a kind of arched 
roof. All that I noticed opened or faced toward 
the east. Some have openings on each side. The 
straw and mortar seemed to be so fresh that it was 
hard to conceive of these monuments of the past 
being centuries old, but of the fact there is no 

The stage managed to pull itself out of the mud 
and reach Caracollo at noon. We set off at once. 
At Villa Villa, a dreary spot, the eating-house had 
nothing ready for us because we were running off 
schedule time. Yet the Frenchman and his wife who 
kept it managed to provide us a mouthful. They 
were from Marseilles. " How did you get away off 
here ? " I incautiously asked him. He shrugged his 

We reached Pandura at nightfall to find that the 
stage coming from La Paz, also running off schedule 
time on account of the rains and the bad roads, had 
arrived there ahead of us. Pandura, which consists 
of three or four mud structures, by squeezing itself 
could just shelter one set of passengers. There was 
no possibility of accommodations for us, nothing 
we could do except to continue our journey over 
dangerous roads. The more fortunate passengers, 
however, were very considerate. We could not ask 
them to give up their beds, but they themselves vol- 
unteered to forego their dinner. It had been ordered 
before our arrival and would be ready in an hour. 
Since they had the whole night before them, they 
could wait for another dinner to be prepared. We 
accepted their offer, and after the meal had been eaten 


with gluttonous appetites, we plunged off in the dark- 
ness. The animals were utterly worthless and could 
barely drag us along. Where fresh mules were in 
waiting they were already blown, and the local tambo- 
keepers refused to let us have the animals which 
were reserved for the government mail. Usually after 
alternate threatening and cajoling we would get the 
post mules, sometimes taking them forcibly, and then 
proceed a little better. But it was a nightmare of a 

In the morning we reached Sicasica. Sicasica is a 
town of consequence and the centre of a silver-mining 
district. It is one of the highest inhabited places in 
Bolivia, the altitude being 14,000 feet. It has an old 
Jesuit church, built in 1622, notable for the fantas- 
tic carving on the lava stone exterior and for some 
passable paintings on the interior walls as well as a 
fine altar. 

Sicasica is notable in another way. It is the 
meeting-place, as it were, where the two distinct Indian 
races, the Aymaras and the Quichuas, come front to 
front. Heretofore in southern Bolivia it was the 
Quichua race I had met and their language I had 
heard, but from Sicasica on the Aymaras were my 
study. Both these Indian idioms are spoken, and 
neither race learns the tongue of the other, nor do 
they have a common medium in Spanish. The local 
innkeeper told me that few of them knew any Spanish, 
and that the little intercourse they had with one 
another was more sign language than anything else. 
Aymara was predominant, and its barking sounds 
were heard in sharp contrast to the softer accents of 
the Quichua. I wandered into a girls' school, where 


the little maids were seated on vicuna skins and, rock- 
ing forward and backward, were conning their lessons 
aloud while the woman teacher accompanied their 
sing-song, standing. There was neither bench nor 
desk of any kind. The primer was in Aymara, and 
seemed to correspond to Noah Webster's spelling- 

In the afternoon we reached Ayoayo, where a small 
garrison of soldiers is maintained. Ayoayo is historic 
for an uprising which was instigated by the priests 
against foreigners. It resulted in a massacre. The 
place also was the headquarters of a stubborn Indian 
uprising against the authority of the Bolivian govern- 
ment. That was many years back, and I do not know 
that the maintenance of a garrison at this time has 
anything to do with past history. The officers were 
bright, fine-appearing men ; the soldiers were stolid- 
looking, but apparently were under excellent disci- 
pline. There are Indian tombs in the neighborhood 
of Ayoayo, though not so many as at Caracollo. 

After leaving Ayoayo is the sublime sight of the 
peerless Illimani, — a vision to my mind equal to that 
of the famed Sorata seen from Lake Titicaca, and un- 
surpassed among the many glorious panoramas of 
mountain grandeur which the Bolivian Andes afford. 

The Continental Andes fork northwest of Lake 
Titicaca in latitude 14°. The Occidental Cordilleras 
trend south to the Pacific coast. The Oriental Cor- 
dilleras extend in a general direction from northwest 
to southeast. They are marked by three series of 
peaks, — the Cololo, which is in Peru ; the Illampu ; 
and the Quisma Cruz, or Three Crosses. The greatest 
of these are the Illampu, which begin with the towering 


glacier peak of Sorata and end with the grouped pin- 
nacles of the Illimani. The heights of the summits 
according to the best estimates vary from 21,200 feet 
to 21,700 feet. It is this region which entitles Bolivia 
to be called the roof of the world fully as much as 

On the Illimani the snows of yesterday are the 
snows of to-morrow. Their sublimity cannot be 
grasped at close view. It is necessary to see them at 
a distance such as that afforded after leaving Ayoayo 
in order fully to appreciate their magnificence, for from 
this point the lower flanks, brown and barren, are not 
visible. A great wall of marble whiteness, with turrets 
and minarets surmounting it, stretches along the hori- 
zon. When the turn in the road is made and the slop- 
ing sides are in sight, the view is grand enough, but 
nothing like the first vision. The chain extends more 
than a hundred miles. The cold from the Illimani is 
felt very sensibly, yet it is a clear and crisp cold and is 
not disagreeable. 

The night was spent at Calamarca, where we found 
an unusually good tambo with the rarest of innova- 
tions — two or three camp bedsteads — and excellent 
food, well cooked by the wife of the innkeeper, a 
very intelligent chola. 

We left Calamarca on the fourth day, though we 
should have been in La Paz at the end of the second 
day. The approach to the capital is across a great 
meseta, or mountain plain. It swarms with Indian 
life. All the region between Oruro and La Paz 
seems to be as thickly populated as the land will sus- 
tain. The stage road not only passes through many 
villages, but there are more of these to the right and 


to the left a short distance from the highway. Some 
of them are not unattractive collections of adobe huts, 
and several of the groups are rendered picturesque by 
the big oval ovens or kilns almost as large as the 
cabins themselves. 

The life is a primitive, pastoral one. Sheep and 
some cattle, alpacas, llamas, and burros are raised and 
graze on the plain and in the valley. Maize, or In- 
dian corn, and a little wheat are grown along with bar- 
ley, and the native cereal known as quinua, which is 
like millet. The crops appear scanty, and the vege- 
tation at this height is not exuberant. 

The native existence, while not a joyous one, does 
not appear to be too sombre. The religious festi- 
vals are celebrated with undeviating punctuality. No 
matter how small the collection of huts, somewhere 
among them is a church, and each group of cabins 
has its own cure. I remarked everywhere the grass 
cross over the dwellings. It was very rare to find a 
hut without this symbolism. It seemed to indicate 
great devoutness, but what I had already seen of the 
cures and their flocks made me doubt whether this 
was the correct explanation. The cross, I was told, 
was blessed by the priest, and then it kept out the rain, 
which at times is very heavy. One old man, who, 
after pretending that he knew nothing but the Aymara 
tongue, had talked very well in Spanish, was asked if 
the crosses really did keep out the rain. He replied 
gravely, " Yes, if the roof is a good one." 

Whether the orthodoxy of the Indians is more 
than a crust of superstition I do not profess to know, 
but I have the conviction that a true missionary 
priesthood would work a vast improvement in their 


condition, and would produce the evidences of gen- 
uine belief in the doctrines of the Church which 
is demonstrated by the practice of those doctrines. 
They have had Roman Catholicism for four hundred 
years, and another form of worship would be mean- 
ingless to them ; but what they need is the vital prin- 
ciples of the Catholic worship, and not the abuses of 
unfaithful servants of the Church. 

I had heard that the Indians in the depths of their 
natures preserved the old traditions, and that they 
still secretly worshipped the White Spirit of the I Hi— 
mani. Several persons whom I asked replied that 
they knew nothing of this belief. One of them, a 
Peruvian who had spent much time among the Indi- 
ans, said the only spirit they worshipped was the spirit 
of alcohol. 

Among the native population the cholos are easily 
distinguished. They are the migratory classes who 
live in the larger towns and some of whom work in 
the mines. Many of them are freighters. They have 
charge of the pack trains to and from the mines. 
They have a distinctive dress, — the loose cotton 
trouser, widening below the knee and with a V-strip 
of different cloth in either side. They are a political 
power, for, while they take little part in the elections, 
they are not unready to share in a disturbance. 

The aboriginal native yet preserves many customs 
distinct from the cholo. He wears a cap, or gorro, 
which was worn in the time of the Incas, and he con- 
tents himself with a blanket instead of trousers if he 
cannot afford the latter. The pure-blood Indians are 
the best for the freight caravans where the llamas are 
employed, for they can manage those whimsical beasts 


of burden as no one else can. The llama feeds as it 
goes along, and a born manager of animals is needed 
to handle a tropa> or drove, of them, and keep them 
moving in regular order. The life of the freighter is 
a hard one, tramping all day and at night sleeping in 
the corral with the beasts. 

The Indian woman in Bolivia occupies a plane on 
an equality with the man. She has no lord and master, 
as has the American Indian woman in the noble red 
man of the West. She works, but he also must work. 
She accompanies him with the pack trains, all the 
while that she is trudging along twirling her spools 
and winding the wool into yarn. It is rare to see an 
Indian woman without her spools unless she is weav- 
ing at the loom. Walking and talking, gossiping and 
scolding, shouting at the llamas, tramping over the 
sharpest mountain-pass or plunging down into the 
gorges, she manages to keep the spool always twirling. 
It is a most peculiar process, and would drive a small 
boy who has a notion of spinning a top on the end 
of his finger wild with emulation, though he hardly 
would be able to imitate the process. 

Marriage bonds among these Indians are not loose 
ties. In all the settled communities where the little 
church has been planted, the priest sees that the cere- 
mony is performed, for it means a fee to him. But 
when the man wanders away for work and is gone for 
years, as sometimes happens, it is no interruption to 
the family bond that on his return a brood of children 
greet him. He resumes the matrimonial relation and 
accepts the children without question. 

There is a prevalent delusion that in these altitudes 
the birth rate is very low, and, moreover, that many 


of the children come into the world deaf or lose the 
sense of hearing soon after birth. While the families 
are not so large as in the tropics or lower altitudes, 
they are numerous enough, and I was not surprised 
to be told that the report about deafness and the 
excessive rate of infant mortality does not bear the 
scrutiny of scientific investigation. 

To reach La Paz from Calamarca it is necessary to 
cross several quebradas, or wide ravines. Then the 
gravelly plain spreads out and stretches to the preci- 
pice of the circular basin in which lies the city. La 
Paz spreads along the inner sides of a rocky amphi- 
theatre, a panorama of red roofs, blended blue and 
white buildings, church towers, and parks of willow 
and eucalyptus trees. The greenest and most refresh- 
ing spot in the mountain bowl, the one which gladdens 
the eye and rests the mind while filling it with pleasing 
anticipations, is the cemetery. But from the Heights 
no one guesses that this oasis is a graveyard. 

A splendid highway leads down to the city, which is 
1,400 feet below the level of the great plain. At 
first it is a straight slanting road at an angle of 
45 degrees. Then it winds and becomes very crooked 
and abrupt. This is the coachman's hour of triumph. 
He sends the mules at a full gallop, and if a spill does 
not happen the plaza is reached in half an hour. In 
passing, there is a blurred impression of steep moun- 
tain sides with burros, llamas, and men and women 
slowly climbing the precipitous paths. This vision 
becomes more substantial when the level is reached 
and it is possible to look back and see what appear to 
be countless processions of two-legged and four-legged 
ants losing themselves on the ridges and steep slopes. 

View of the Cathedral, La Paz 


La Paz has a plaza and an alameda and two or 
three smaller parks which are not uninviting. The 
Chuquiyupu, or La Paz, River winds through the 
town. The hillsides on which the buildings are 
located are very steep. The Plaza Murillo is a sort 
of terrace or level between the river and the ridge. 
There is an old cathedral, — one of the few in South 
America about which I know nothing, for I did not 
even enter it. The market-place in front affords the 
best examples of native life. La Paz, notwithstanding 
it is the commercial centre and has the largest Spanish 
and foreign element, is still the home of the native 
race. The town has a population of 60,000, of whom 
40,000 are said to be Aymaras, 10,000 cholos, and the 
remainder of European, chiefly Spanish, origin. The 
cholos learn to speak Spanish, but the Aymaras will 

Though no act of Congress has formally made ef- 
fective the provision of the Constitution which allows 
the capital to be shifted, Sucre no longer is the seat 
of government. The President has his residence in 
La Paz, it is the headquarters of the army, the national 
custom-house is there, and the Congress meets there. 
When Sucre was the actual capital, it was isolated from 
the rest of the country. The foreign ministers lived 
at La Paz. Some of them during their term of office 
never visited Sucre, but contented themselves by send- 
ing their credentials by messenger or through the 

La Paz is notable for the international character of 
its society. At a dinner at the home of Minister 
Sorsby I met a Bavarian mining capitalist and his wife, 
an English railway manager married to an Argentine 


lady, the wife of a Greek mining engineer who had 
come out from Constantinople on her bridal trip, a 
French financier, a Spanish merchant, two or three 
Peruvian gentlemen, as many Americans, and a Bra- 
zilian. This is the cosmopolitanism of a mining 
country in any part of the world. Mr. Mathieu, the 
Chilean Minister, I had known in Washington when 
he was Secretary of the Legation. Mr. Ignacio Cal- 
deron, afterwards Bolivian Minister to the United 
States, at the time of my visit was the Secretary of the 
Treasury. A pleasant incident was a breakfast with 
his family and a talk of home affairs, for his wife was 
a Baltimore lady. 

A resting-place after weeks of wayfaring, a vantage 
point for digesting information and maturing impres- 
sions of the imprisoned country and her people, a 
preparation place for further wayfaring, — all these 
La Paz was for me. 



Depression and Revival of Mining Industry — Bolivia's Tin De- 
posits and Their Extension — Oruro, Chorolque^ Potosi, and 
La Paz Districts — Silver Regions — Potosi's Output through 
the Centuries — Pulacayo's Record — Mines at Great Heights 
— Trend of the Copper Veins — Corocoro, a Lake Superior 
Region — Three Gold Districts — Bismuth and Borax — 
Bituminous Coal and Petroleum — Tropical Agriculture — 
Some Rubber Forests Left — Coffee for Export — Coca and 
Quinine — Cotton, 

BOLIVIA, in the character, variety, and extent of 
her resources, is the Mexico of South America. 
Her mines yielded the precious metals for hundreds 
of years. She was the casket of gems held in pawn 
by the Spanish Crown. She poured the riches of 
prodigal mother Nature into the lap of the mother 

Nor was the largess limited to the colonial epoch. 
The prosperity continued until world conditions, the 
fall in the price of silver, the depression in the baser 
metals, bore with crushing weight on an industry 
which after centuries of ceaseless exploitation must 
show exhaustion. Lack of transportation facilities 
discouraged capital from meeting the stress of lowered 
prices by replacing primitive processes with modern 
methods. Mining was not abandoned, but it did not 
advance. Fresh discoveries did not follow exhausted 
ore beds. 


But the dawn of the mining revival came. It was 
heralded by the basis of all modern industrial devel- 
opment, — railways. The country will have means of 
communication. The impulse will be given to work- 
ing old mines and developing new ones, and the prog- 
ress for the next quarter of a century promises to 
parallel that made by Mexico during the last twenty- 
five years. Much of it will be due to the policy 
initiated by General Jose M. Pando, and followed by 
his 'successor, President Ismael Montes. The under- 
standing of the prospect will best be had after knowl- 
edge of what constitutes the mineral resources of the 
country. From 83 to 85 per cent of the exports are 
of this class. 

Bolivia has not only the precious metals. She also 
possesses tin. So few countries in the world produce 
tin, and the article maintains so steady a price, that it 
is surprising enterprising capital has not made greater 
efforts to exploit the Bolivian deposits. This mineral 
is found all through the eastern fold of the plain lying 
between the Oriental and the Occidental Cordilleras. 
It extends from the vicinity of Lake Titicaca to the 
southern boundary of the Republic. The richest and 
most productive zone of this region is between south 
latitude 17° and 19°, but the tin fields cover an extent 
of 300 miles. The most common formation is of 
slate and gravel, tin being found in the igneous rocks. 
The best known districts are Milluni ; Huayna- 
Potosi, where the mines are worked more than 
17,000 feet above sea-level ; Colquiri, where the early 
Spaniards found tin concentrates, and other sections of 
the Province of Inquisivi; Oruro; parts of the Prov- 
ince of Poopo, and the districts of Chayanta, Potosi, 


Porco, Tacna, Chorolque, Chocaya, and Cotagaita. 
The three latter deposits are in the vicinity of Uyuni. 

The productive districts are known as La Paz, in 
the north ; Oruro, in the centre ; Chorolque, in the 
south ; and Potosi, in the east. Some of the deposits 
are superficial and thinly spread out over a great ex- 
tent, while others have been followed to a depth of 
1,000 feet and are still continued. The thickness of 
the veins varies from a few inches up to 10 feet. In 
some of the mines the mineral is found comparatively 
pure, containing 40 or 50 per cent and even as high as 
6$ per cent of the metal. In others the oxide of tin 
nearly pure is encountered in the form of crystal grains 
and nodules of a kind of sticky iron sand. 

In the northern district between the Illimani and 
Sorata, and not more than 20 miles from La Paz, is the 
beginning of the tin deposits of Huayna-Potosi. The 
tin is found in combination with bismuth, iron pyrites, 
silver, galena, and even with gold. Milluni is a few 
miles north of Huayna-Potosi. It has a group of 
parallel lodes, running east, north, and south, which are 
composed of quartz impregnated with fine earth, more 
or less crystallized, and oxides of iron pyrites. There 
are also veins, running in a westerly direction, which 
have galena, blends, and carbonates of iron. The 
greater part of the workings have been at slight depths 
where the mineral is easily extracted. Chocaltaga, 
which is within 12 miles of La Paz, is operated under 
similar conditions. It forms part of the single deposit 
of Huayna-Potosi and Milluni. The ore extracted 
from this group is exported by way of Lake Titicaca 
and Mollendo. 

The Oruro region is the most important, as appears 



from the comparisons of production. The output of 
the different districts for a series of years is shown 
in the following table, in terms of metric quintals of 
220.46 pounds : 


Metric quintals 







Oruro . . . 














Potosi . . ■ . 







La Paz . . . 







\ Total . . 







This shows that the production rose from 37,495 
metric quintals, in 1897, to 176,083 in 1902. The 
value as expressed in bolivianos mounted from 2,986,- 
000 to 8,783,000, or from #1,255,000 to #3,689,000. 
Since then the output has grown continuously. The 
Potosi district has increased its production steadily, but 
the greatest development is in the Oruro zone. The 
tin is exported mainly to Liverpool, though a variable 
quantity goes to Hamburg. It is subject to a small 
export duty, the rate being 1.60 bolivianos for each 
46 kilograms of bar tin and 1 boliviano for the mineral 
in the spongy form known as barilla, or black tin. For 
the bar this is about 70 cents per 100 pounds, and 43 
cents for the barilla. The latter is the form preferred 
for export. In a recent year the exports through the 
port of Antofagasta were: barillas, 29,583,000 pounds, 
and bars, 4,686,000 pounds. 


In every sense the tin-mining industry may be said 
to be one of the future, notwithstanding that it has 
been worked for years chiefly with a view to securing 
the pure tin and without much regard to the silver 
associated with the deposits. In the Oruro region 
some oxidized ores from near the outcrops are operated 
for tin, but the bulk of the mineral comes from the 
sulphide zone. From 2 to 4 per cent of tin has been 
obtained by concentration and lixiviation tailings. In 
Potosi there are also silver amalgamation tailings. 
The past development of the industry was due to the 
building of the railroad from Antofagasta to Oruro. 
This provided means of transportation which made it 
profitable to work the tin deposits within the limited 
zone where lower freights could be assured. The 
company granted a special tariff for the transport of 
machinery, fuel, and ores. By the llama or other pack 
animals it cost about $1.2.5 P er ton f° r eacn m ^ e °^ 
transportation to the concentration mills. The freight 
to Europe for each metric ton of 2,204 pounds aver- 
aged 35 bolivianos, or $14.90, the proportion charged 
by the railroad from Oruro to Antofagasta being about 
4.89 bolivianos per metric quintal of 220 pounds. 
Other transport and shipping charges were about 3 
bolivianos for each quintal. 

Of the world's total tin output, say 100,000 tons, 
the Bolivian production under present conditions may 
be placed at from 9,000 to 10,000 tons, or more than 
equal that of Cornwall and Australia combined. Since 
the United States consumes 43 per cent of the entire 
production of tin, the importance of the development 
of the deposits in Bolivia and of the transportation 
facilities should be appreciated. 


The richest silver-producing districts of Bolivia are 
in the western part and along the metalliferous zones 
of the central plateau which form the base of the great 
plain. Toward the north, south, and east the ore 
deposits crown the summits of the Andine sierras 
sloping to the west. The region is divided into three 
sections which differ fundamentally in their geological 
composition. The Department of Potosi is the most 
abundant in silver ores. In it are situated the deposits 
of Huanchaca, Aullogas, Colquechaca, Porco, Gua- 
dalupe, Chorolque, Portugalete, and Lipez. 

The famous, though not fabulous, silver field of 
Bolivia was the Potosi. It is said that there may be 
people in the world who never have heard of Bolivia, 
but there can be no one to whom the name Potosi is 
unknown. " Were I to pay thee, Sancho," said Don 
Quixote to his squire, when the servitor was bargaining 
to inflict lashes on himself in order to disenchant the 
knight's Dulcinea, cc in proportion to the magnitude 
of the service, the treasure of Venice and the mines of 
Potosi would be too small a recompense." 

The discovery was made by an Indian herder, named 
Gualca, who was pasturing his drove of llamas when 
he came upon what seemed to be a white metal cord. 
It was silver. The cerro> or conical hill, of Potosi at 
the apex is 4,780 metres, 15,675 feet, above sea-level. 
The configuration is volcanic. The veins run from 
north to south, with an average inclination of 75 
degrees crossing to the east. The igneous rock which 
composes the interior mass of the cerro is impregnated 
in all directions with metallic substances, — lead, tin, 
copper, and iron. It is distinguished principally by 
the abundance of silver in the state of chlorides and 


sulphides. The great system of lagoons or canals was 
finished in 1621, and cost $2> 500,000, or what would 
be equivalent to-day to f 1 2,000,000. Originally there 
were thirty-two of these canals. 

A chain of authorities from Humboldt to Soetbeer 
have estimated the silver production of the Potosi 
district through different periods. From 1545 to 
1800 these mines rendered to Spain $163,000,000, 
which was the tribute that the Crown exacted of one- 
fifth of the production. This would fix the taxed 
output at more than $800,000,000, but historians are 
agreed that this was far from the actual amount. In 
161 1 the Spanish authorities tabulated 160,000 inhabit- 
ants in this district. In 1905 the population was 
1 2,000. This measures the decadence of the industry. 

The carved stone head which marks the entrance 
to the old mint, the one established by the Spaniards 
in 1585 and kept in operation for more than two 
centuries, now grins on the few Indians who gather 
around the fountain under it with their droves of 
llamas. The grinning head seems to mock their 
present meagre burdens with the memories of the 
silver caravans of the past. But it does not follow that 
those days have gone forever. The Potosi mines 
await the railway to replace the llama, and they want 
also modern methods to restore the riches that defy 
the old processes of mining. 

The most productive silver mine in South America 
is the Pulacayo. It is located in the Province of 
Porco in the Huanchaca district, and is operated by 
the Huanchaca Company. The height is 15,153 feet, 
and the entrance is through a tunnel, or socavon, 
known as the San Leon. The claim is made that 


this mine as a silver producer is the second in the 
world, the first being the Broken Hill of Australia. 
From 1873 to 1901 the production was 4,520 tons of 
silver, and the value of the output was estimated at 
$116,000,000. Formerly the ore was smelted at 
Huanchaca, Asiento, and Ubina, but now much of it 
is carried down to Playa Blanca, near Antofagasta. 
The company employs 3,200 laborers. 

In the Chorolque district is said to be the highest 
mine in the world, 18,696 feet above sea-level. The 
altitude of the colossal conical peak is 21,156 feet. 
In this mountain and its environment are veins of 
silver, tin, bismuth, lead, copper, bronze, kaolin, and 
wolfram. It is in the region of eternal snows, of never- 
ending winds, of intense cold, and of rarefied atmos- 
phere. It is operated through a tunnel known as 
the San Bartholomew and an aerial railway, half a mile 
long, by means of which the workingmen descend and 
return to outer earth. A drawback to the exploitation 
of this region is the lack of transportation facilities, 
the nearest railroad junction, at Uyuni, being 95 miles. 
This difficulty will be overcome when the railway is 
built from Uyuni toTupiza, as a short spur will enable 
connection to be made with Chorolque. 

The mines in the neighborhood of Oruro were dis- 
covered in 1575. In the beginning of the eighteenth 
century, just before the War of Independence, in three 
years they paid to the Spanish Crown as the tax of 
one-fifth, $40,000,000, which would mean an admitted 
production of $200,000,000. In the district of Oruro 
are said to be nearly 5,000 abandoned silver mines. 
In the immediate vicinity of the city a score of silver 
and tin mines are in operation. The most important 


of these is the Socavon of the Virgin. This is owned 
by a Chilean company. The smelting, or amalgama- 
tion, works are located at Machacamarca. Since 1898 
the process employed has been the use of hyposul- 
phide lixiviation. The San Jose mine is located in 
a basin two miles from Oruro. It is controlled by a 
Bolivian company, is electrically lighted, and has a 
smelting establishment employing the Wetherill sys- 
tem by means of electro-magnetism. During several 
years the value of its annual output amounted to 
$ 1, 000,000. 

Under the law the mines are obliged to deliver 
in silver bullion the fifth part of the exploitation to 
the national mint for coinage, and the price is fixed 
monthly by the Secretary of the Treasury. When 
the drop in silver continued, Bolivia lowered its export 
duty, and finally, in December, 1902, silver bullion and 
minerals were freed from export payment. The pres- 
ent Bolivian silver production, which is 8,000,000 to 
9,000,000 ounces annually, forms a very small pro- 
portion of the world's total output. But with the 
building of railroads and the assured decrease of 
transportation charges, it is a safe prophecy that within 
a few years the output will be doubled, if not quad- 
rupled. Here Mexico again furnishes the illustra- 
tion. In 1877 Mexico's total silver production was 
$25,000,000, while in 1902, or a quarter of a century 
later, it had risen to $73,000,000, and this increase had 
been brought about very largely through the facilities 
afforded by the railroads, causing many old mines to be 
worked profitably and new ones to be discovered. 

The copper deposits follow principally the course 
of the Andes from the Atacama desert through Lipez, 


Porco, Chayanta, and Calchas, northeast to Corocoro. 
The most important field is that of Corocoro in the 
Department of La Paz, 13,000 to 13,200 feet above 
sea-level. It is the Lake Superior region of Bolivia. 
The form in which the copper is most commonly met 
with is in small, irregular, spongy grains which are 
called barilla, and which are from 70 to 80 per cent 
pure. The native metal varies from the microscopic 
grains, or barilla, to great masses of almost pure copper 
which the miners call charqui. Other metals are found 
in combination. An analysis made in Hamburg gave 
the following results : 

Copper 329 

Nickel 175 

Silver 9 

Zinc 117 

Other substances 370 


At times the mines of Corocoro have been exploited 
chiefly for the silver deposits, and their auriferous char- 
acter also has been an element in their value. The 
claim is made that enough gold exists in the copper ore 
to pay the freight charges to Europe. The town has 
15,000 inhabitants, and is the capital of the Province 
of Pacajes. The copper layers of this region are 
known in an extension of 35 miles. The mines are 
owned by Chilean, French, English, German, and 
Bolivian capitalists, to whom American syndicates 
make regular offers. 

The production of the Corocoro district, in spite of 
discouraging markets, has mounted steadily. In 1879 
it was 20,240 metric quintals, but in 1886 it had 
dropped to 10,000. In 1900 it was 25,636, and in 
1902, 42,014 quintals, or nearly 1,000,000 pounds. 


The freight charges have been a heavy drawback to 
the industry. The two outlets from Corocoro are 
through Desaguadero River to Nazacara on Lake 
Titicaca, across the lake to Puno, and thence by the 
railroad to Mollendo and by ship to Europe ; by pack 
animals to Tacna, and thence by rail to Arica and by 
ship to Europe. To Mollendo the cost of freight 
and insurance was 1.87 bolivianos (78 cents), while to 
Arica it was 2.24 bolivianos (96 cents) per quintal. 
The ocean freight to Europe from either point was 
about 2.78 bolivianos ($1.1 7). The building of the 
railroad from Corocoro to Tacna will afford the cop- 
per mines cheaper freights. 

The government exacts a small export duty on the 
copper ore. The industry has promising possibilities 
in other regions, in addition to the increased devel- 
opment that may be looked for in the Corocoro dis- 
trict. The best paying of these is in Lipez, where the 
white native copper is produced and the ore treated 
simply by concentration. 

There are three gold regions. The first extends 
from the western borders of the Republic, beginning 
in the basin of the Inambari River, to the upper Para- 
guay. It includes the mountain zone of Caupolican, 
Munecas, Larecaja, Cercado, Yungas, Inquisivi in the 
Department of La Paz, continues through the Depart- 
ment of Cochabamba, and is prolonged through Santa 
Cruz. There are some famed placer washings in this 
district, including the Suches and the Tipuani. The 
Suches is promising both for quartz and for placers. 
American gold-miners undertook to dive for the gold 
washings in the Tipuani, and they are said to have 
had a fair degree of success. 


The Larecaja placers of Tipuani are historic. They 
have been worked since the time of the Incas. The 
Portuguese began to test them in the middle of the 
sixteenth century, and introduced negro laborers from 
Brazil. The Villamil family from 1 8 1 8 to 1867 ob- 
tained 151,000 ounces of gold from the Larecaja 
properties controlled by them. The placers of the 
Yani River are also given considerable importance. 
The best-known mine in this section is the Elsa. 
The German mining engineer, StumpfF, estimated the 
quartz here at 61,000,000 tons, giving 36 cents of 
gold for each ton. 

The city of La Paz lies in the gold gulch of the 
river Chuquiyupu. This is an Aymara name, mean- 
ing inheritance of gold. 

The second gold-producing region, generally called 
the Chuquisaca, commences at Atacama and Lipez on 
the border of Chile, and runs through the southern 
section of the district of Chayanta, Sur Chichas, Men- 
dez or Tarija, and Chuquisaca, extending to the plains 
of Santa Cruz. The best-known placers are in the 
bed of San Juan River, known as the Gold River of 
St. John. A large amount of money is invested in 
dredging machinery for the exploitation of this river. 
In the Province of Chayanta many gold-mining claims 
have been filed, but few are worked. 

The third auriferous region, and the one believed to 
be the richest, is in the far north of the Republic, 
along the limits of Peru, and following the water- 
courses of the Madre de Dios, the Acre, and the 
Purus Rivers. As this zone is occupied entirely by 
savages, its wealth of gold has not been exploited 
and is more or less fabulous. 


The gold production of Bolivia which is accounted 
for is very small, though the calculation of Humboldt 
and others is that from 1540 to 1750 it amounted to 
^420,000,000. No reliable statistics regarding pres- 
ent production are obtainable, for, notwithstanding the 
very light export duty, which is 20 cents per ounce, 
there is reason to believe that full reports are not 
made by the mines. In 1901 the output of which 
the government had account was 550 kilograms, and 
in 1902, 580 kilograms. 

In the production of bismuth Bolivia claims to lead 
the world. The King of Saxony takes the product in 
order to protect his own monopoly. The geological 
formation and the geographical distribution of bismuth 
follow the same direction as tin, the deposits being in 
the transverse folds of the eastern slope of the Andes. 
It is found mixed with the veins of tin and silver, and 
occasionally it is encountered in the native state. The 
tin and silver beds of Chorolque contain bismuth. 
The deposits in this district have sulphurs of copper 
and iron which are easily separated. The most recent 
discoveries have been in the Province of Inquisivi. 
The production in 1901 was 4,925 metric quintals; 
in 1902, 3,450. The value the latter year was about 
1350,000. The government imposes a very slight 
export duty. 

Among the mineral substances not metallic, which 
Bolivia counts as a source of wealth, is borax. The 
chief deposits are situated in the Province of Carangas, 
in the Department of Oruro. The principal field there 
is the Chilcaya, which has an extent of 30,000 acres. 
The Chilcaya borax is said to be of the best quality, 
with 47 per cent water. Its exploitation is quite 


primitive. Chilcaya is 120 miles from Arica, which 
is the export port for it. 

Geologically, and in general terms, the carboniferous 
zone is described as extending south toward the Pil- 
comayo. Bituminous coal and petroleum exist, but 
their commercial possibilities have not been established. 
Petroleum is found in the peninsula of Copacabama 
and other points along the shores of Lake Titicaca, 
but these deposits are not important. Coal veins of 
uncertain value exist in the northern chains of the Cor- 
dilleras, extending from the Tinchi River to the border 
of Peru. In the Province of Caupolican the crude 
petroleum is used by the local population. 

Coal and petroleum also are found in some districts 
of Tarija, Cochabamba, and Santa Cruz. An analysis 
was made in 1904 by the French geologists, under 
direction of the government, of the coal beds in the 
Chimore and Apilla-pampa districts. It showed for 
the Chimore samples volatile substances, 24 per cent ; 
carbon, 47.5 per cent; ash, 28.5 per cent. In the 
Apilla-pampa specimens an appreciable quantity of 
sulphur was found. Specimens from both districts 
burned well, although not free from slate. Preference 
was given the Chimore coal as containing a greater 
quantity of coke and volatile substances. It was 
declared to be capable of utilization in industries and 
particularly in the production of gas. Since the central 
plateau and the most thickly populated regions are 
above the timber line, and recourse has to be had to 
the llama droppings for fuel, if further exploitation of 
the Chimore region shows the presence of coal in large 
quantities, it will be a decided economic gain to the 
country. But the indications do not favor it. 


As regards tropical agriculture, Bolivia is also similar 
to Mexico. Rubber was a great fount of prospective 
income until the value was compounded in the form 
of a cash indemnity of $10,000,000 from Brazil, when 
all title to the Acre territory was yielded. But there 
are other regions yet left, and Bolivia may still look 
upon rubber as a source of national wealth. She 
retains some gum forests in the Madre de Dios zone, 
which has its outlet through Villa Bella at the conflu- 
ence of the Beni and Mamore Rivers, and which 
includes the Madidi, Orton, upper and lower Beni, 
and Manuripi Rivers. Another region is compre- 
hended in the districts of Chalanna, Songo, Mapiri, 
Huanay, Coroico, and a part of the Province of Cau- 
polican. This district has its outlet through Puerto 
Perez on Lake Titicaca. Its rubber product already 
is exploited to a fair degree. The Germans have large 
interests in this region. 

A district which is practically unexploited is in the 
northern and eastern part of the Department of Santa 
Cruz, formed by the provinces of the Velasco and 
Magdalena, and bordering on the Brazilian State of 
Matto Grosso. The gum forests here are along the 
rivers Paraguay and Verde. They are very remote 
and practically unexploited, but in time undoubtedly 
they will be opened up. In the region of Yuracares, 
in the Department of Cochabamba, there is also a spe- 
cies of rubber tree. 

Bolivia has a complete code of legislation governing 
the production and export of rubber, including the 
imposts to be paid. The gum trees are national 
property, and neither natives nor foreigners have the 
right to exploit them without special license, preference 


being given the one whose discovery claim is filed first. 
In the Territory of Colonias, which included Acre, 
each person was permitted to acquire 500 trees, while 
companies could acquire 1,000. 

Of Bolivian agricultural products for export, coffee 
is entitled to a chief place. Its cultivation is carried 
on chiefly in the district known as the Yungas, or hot 
lands, but the shipments for the world's consumption 
cannot be large in competition with Brazil and other 
countries. Coffee is exported to northern Argentina 
and to Chile with profit. The European shipments 
of late years have been unimportant, notwithstanding 
that the excellent quality of the exported product had 
given it a trade standing. With the coffee lands given 
railroad transportation, the Yungas product, whose 
flavor is as fine as that of Arabia, may regain its 
foreign market. 

It is a question whether coca is a blessing or a curse 
to Bolivia. This is the plant from which cocaine is 
had, and from the similarity in name is often confused 
with cacao, or chocolate. The natives have chewed 
the leaves for hundreds of years, and the students of 
racial atavism profess to see in its qualities stupefying 
effects which have brutalized the existing Indian race. 
It is, however, an important agricultural industry. 
The shrub grows from two to eight feet high. It is 
cultivated in the lower plains of the eastern slope of 
the Andes at heights varying from 1,100 to 5,300 feet. 
Its cultivation is the leading industry of the Yungas 
district, in which there are many fine plantations. A 
plantation lasts from thirty to forty years if handled 
with care and intelligence. The last year for which 
figures were given, the coca product was placed at 

Gathering Coca Leaves in the Yungas 


3,450,000 kilograms (7,890,000 pounds), valued at 
#1,250,000. The government taxes the production, 
and draws considerable revenue therefrom, since the 
home consumption is so common. The exportation 
is through the ports of Mollendo, Arica, and Antofa- 
gasta, and also through Argentina by way of Tupiza. 
France is the chief buyer. The exports amount to 
556,275 kilograms on an average each twelvemonth, 
but the foreign market is uncertain, and in some years 
the quantity sent out of the country is much smaller. 

Sometimes it is forgotten that when the British 
government secured the cultivation of the cinchona 
tree in Ceylon and India, the quinine industry was not 
entirely transplanted from Peru and Bolivia. Annu- 
ally from 250,000 to 325,000 kilograms, or 715,000 
pounds, of cinchona bark are shipped through the 
ports of Mollendo and Arica. In the eastern Andine 
region 6,000,000 trees are said to be under culture, 
there being a large number of the groves on the broken 
mountain-sides at altitudes of 3,200 to 6,500 feet. The 
Bolivian product gives from 30 to 32 grammes of 
sulphate of quinine for each kilogram, and, it is claimed, 
is superior to other South American bark. 

Cotton-growing without question has a future in the 
Santa Cruz and Chimore region. It has been claimed 
that this district can produce 375,000,000 kilograms, — 
at least, this was the pretension of some enthusiastic 
railway promoters. They estimated that one hectare •, 
or 2 \ acres, would grow 1,600 plants, each of which 
would yield two pounds of ginned cotton, and that 
50,000 families could be colonized in this region 
who would cultivate each six months 15,000 pounds. 
While experienced cotton - growers smile at these 


fanciful figures, the experts who have studied the pos- 
sibilities of the soil and climate in this region credit 
it with undoubted cotton capabilities. It is another 
illustration of Bolivia's varied resources and of her 
similarity to Mexico. 



Panama Canal as Outlet for Mid-continent Country — Rail- 
ways for Internal Development — Intercontinental Backbone 
— Proposed Network of Lines — Use Made of Brazilian In- 
demnity ■ — Chilean Construction from Arica — Human Ma- 
terial for National Development — Census of i goo — Ayjnara 
Race — Wise Governmental Handling of Indian Problems — 
Immigration Measures — Climatic Variations — Political Sta- 
bility — General Randoms Labors — Status of Foreigners — 
Revenues and Trade — Commercial Significance of Treaty 
with Chile — Gold. Legislation — A Canal View, 

MID-CONTINENT country though she is, Bo- 
livia realizes the value to her of the Panama 
Canal. For a great many years the larger part of 
her exports must be ores and metals. The mineral 
regions lie chiefly on the Pacific side of the Royal 
or Oriental Andes. A portion of the output in the 
southern district may find its way profitably down 
through Argentina, but the overwhelming bulk of 
the mineral products will have the shortest transit, 
and therefore the cheapest outlet by the West Coast, 
through Antofagasta, Arica, and Mollendo, all within 
the waterway radius. This also will be the route for the 
machinery and the merchandise imported. 

The future of Bolivia is so intensely an industrial 
one, that the public men who came into power when 
General Pando became President keenly appreciated 


that they must secure the means of internal devel- 
opment. This could be fostered only by building 
railways. In relation to the general subject of rail 
communication and transportation the Bolivian plans 
fit intimately with the Intercontinental or Pan-American 
railroad idea. To have a complete national system of 
railways it is essential that there shall be a through 
trunk line from Lake Titicaca to Argentina, though the 
branches toward the Pacific themselves partake of the 
nature of main lines. In the political aspect the mo- 
tive is to secure such domestic progress as in time will 
enable Bolivia to obtain a seaport of her own. Yet 
a patriotic policy of forethought for all contingencies 
forbids her to be dependent entirely on the Pacific 
outlet. Out of this feeling grew not only the deter- 
mination to complete the connection with the Argen- 
tine system, but also the purpose of combining railroad 
and water transportation, so that the great river basins 
of the northeastern region shall have through com- 
munication with the capital and with the interior of 
the country, and afford an Atlantic outlet by means of 
Villa Bella and the Amazon River. 

In this manner Bolivia helps to maintain her inde- 
pendence and to free herself from too heavily leaning 
on her Pacific coast neighbors. Nevertheless, geog- 
raphy decrees that her earlier stages of development 
for a quarter of a century, perhaps for half a century, 
shall be to obtain the fullest advantage of the ex- 
tension of the Panama Canal zone along the West 

The political, geographical, and economic conditions 
which, in the view of President Montes and the pro- 
gressive public men of Bolivia, are necessary for the 


development of the nation, involve the construction 
of railway lines somewhat as follows : 

1. Viacha to Oruro. 

2. Uyuni to Tupiza and Quiaca. 

3. Oruro to Cochabamba. 

4. Cochabamba to the Chimore River. 

5. Chimore to Santa Cruz. 

6. Uyuni or Sevaruyo to Potosi. 

7. Potosi to Sucre. 

8. Sucre through Padilla and Lagunillas to Santa Cruz and 

9. Tarija to junction with Argentine lines. 

10. La Paz to head-waters of the Beni at Puerto Pando. 

11. La Paz via Corocoro to Tacna and Arica. 

12. Oruro to Potosi. 

13. Potosi to Tupiza. 

This scheme is very general, yet it has a solid basis. 
When visiting Bolivia in the Autumn of 1903 on an 
official mission, the plans were explained to me, and 
the prospective events on which were founded the 
expectations of realizing them. Concurring circum- 
stances followed swiftly. At the beginning of 1905 
Bolivia was in the possession of cash capital of 
$10,000,000, — the indemnity received from Brazil 
for the Acre rubber territory ; Chile, for patent rea- 
sons of national policy, by a treaty agreement had 
obligated herself to construct the line from Arica to 
La Paz, and also to advance funds to Bolivia, as a 
guaranty for further railway building; the Peruvian 
Corporation, to insure its share of future traffic to the 
Pacific, was engaging in various projects, and minor 
enterprises were advancing under the encouragement 
given by the government. 


A rough calculation of the cost of railway building 
was $20,000 per mile in the central plateau, $24,000 
in the valleys, and $32,000 in the mountain regions. 
The latter estimate was too low, but taking the topog- 
raphy of the country in its entirety and making a 
general engineering reconnaissance of the proposed 
routes with a maximum grade of 3 per cent, it may 
be assumed that the 700 miles of railway which are 
reasonably sure to be constructed can be built for an 
average cost of $35,000 per mile, or $25,000,000. 
Half that amount of capital might be said to be in 
the control of the Bolivian government at the begin- 
ning of 1906. The ultimate extension projected in 
order to league all the parts of the country together is 
about 1,700 miles, but that is a matter of many years. 

When the 128 miles of the Pan-American system 
between Viacha and Oruro are completed, there will 
remain only 125 miles from Uyuni to Tupiza, and 
then the through links will exist from Lake Titicaca 
to Buenos Ayres, for the Argentine government will 
have completed the prolongation of its line to Tupiza, 
the section within Bolivian territory, 55 miles in length, 
being constructed and operated under a special treaty. 
Three-fourths of the traffic of the Southern Railway 
from Puno to Mollendo is furnished by Bolivia, and 
it is important for the Peruvian Corporation, which 
operates that railroad, to make sure that its Bolivian 
freight shall not be diverted. The traffic by way of 
Lake Titicaca and Mollendo is about 25,000 tons 

The network of railways in project includes the sec- 
tion between Uyuni and Tupiza, and the line from 
Uyuni or Sevaruyo to Potosi, and from Oruro to 


S5»»^ Vt 





Cochabamba. The commerce of Cochabamba is 
considerable, yet the most pressing national need 
is to furnish the Potosi mines with transportation 
facilities. After the convention with Chile for the 
construction of the line from Arica to La Paz the 
American engineers who were making the reconnais- 
sance indicated a preference for the routes from Oruro 
to Potosi and from Potosi to Tupiza as the comple- 
ment of that system. 1 

How soon the territory of the Yungas, that is, the 
head-waters of the Beni, will be opened up may be 
a matter of conjecture ; but the very great advantage 
resulting to the Bolivian government from having 
this rich tropical territory developed, which among 
other things would help to provide the capital with fuel, 
insures the building of a railway of some kind. The 
success attending the electric road from the Heights 
of La Paz down into the city may afford some test of 
the feasibility of using the waters of the Inquisivi 
River as the means of traction to Puerto Pando, for 
the water-power of this stream is almost unlimited. 
Once the head-waters of the Beni are reached, the 
way will be open for navigation to the confluence at 
Villa Bella of the Mamore and the Madre de Dios, 
which later. reach the Amazon. When the Brazilian 
government carries out the long-postponed plan of 
building a railway around the Madeira Falls, Bolivia's 
course to the Atlantic will be shortened. 

This Amazon outlet is likely to become practicable 
long before the route by way of the Paraguay and the 
Plate is opened. 

1 Reconnaissance Report upon the Proposed System of Bolivian Railways, 
by W. L. Sisson, C. E. La Paz, 1905. 


The Antofagasta and Oruro railway, with its i\ feet 
gauge for the whole 575 miles, has been a very profit- 
able enterprise, and indicates the prospective profit of 
other railways. The government guaranteed 6 per cent 
annually on the cost of the Bolivian section, that cost 
not to exceed X75°j 000 > DUt ^ never nas Deen called 
on to meet the guaranty, the net earnings being suf- 
ficient to pay all fixed charges and handsome dividends. 
The railway between Viacha and Oruro, when built, 
will be of the 1 metre gauge (3 feet, 3§ inches) which 
is the gauge of the line between La Paz and Viacha. 
Ultimately the Oruro and Antofagasta line is bound 
to be widened in conformity with it. 

There may be halts in the policy of the Bolivian 
government. Changes may occur. Unexpected ob- 
stacles may postpone the fruition of all these national 
hopes. Yet during the period when the Panama 
Canal is building between #3 5,000,000 and $40,000,- 
000 is likely to be employed in railroad construction, 
and this will mean collateral expenditures in other 
directions. It may be guessed that $50,000,000 will 
be spent in internal development during the next 
twenty or twenty-five years. That would not seem 
much in the United States, but in a country such 
as Bolivia it is an enormous sum. 

What is the human material for this development, 
the mineral and other physical resources being under- 
stood ? Taking the Acre region from it, and aver- 
aging the territory which will be given Bolivia in the 
settlement of the boundary disputes with Peru and 
Paraguay, the country may be said to have an area 
of 400,000 square miles. A reasonably trustworthy 
census was taken in September, 1900, and this placed 


the total number of inhabitants at 1,816,000. Of 
these the classification was made : 

Aboriginal Indian race 1,028,000 

Mestizos, or mixed blood 560,000 

Whites 215,000 

The remainder was composed of negroes and 
blended nationalities. 

The relative number of inhabitants in the different 
political divisions of the country was : 

Department Inhabitants 

Chuquisaca 196,434 

El Beni 25,680 

Oruro 86,081 

Tarija 67,887 

Cochabamba 326,163 

Santa Cruz 171,592 

Potosi 325,615 

La Paz 426,930 

Territory of Colonias 7,228 

Not enumerated 182,661 

Total 1,816,271 

A curious circumstance is the even ratio of the sexes. 
Of the 1,633,610 enumerated population, the males 
were 819,247 and the females 814,363. The Indian 
woman fills so important a function in the industrial 
economy of the country that her numerical standing is 
of consequence. 

This census of 1900 showed that the foreigners 

domiciled in Bolivia were few. The total was 7,400, 

and it was made chiefly of Argentinos, Peruvians, 

and Chileans. The Europeans — Italians, Spanish, 

Germans, French, Austrians, and English — numbered 

1,500. Substantially it might be said the Republic 

up to the present is without a foreign population large 



enough to influence its national character and devel- 
opment. The native inhabitants are the economic 
element of growth. 

The whites are of Spanish origin. The cholos are 
more Indian than Spanish, but they have shown con- 
siderable capacity for civilization and progress. The 
Indians are very largely the Aymara race. Possibly 
one-fourth may be of Quichua stock, but certainly not 
more. Included in this aboriginal people are a large 
number of unclassified Indian tribes, and some of 
these, particularly the savages, have no affiliation with 
Aymaras or Quichuas. The number of savages is 
placed at 91,000, though that is hardly more than an 
estimate. They are found in the river regions of the 
East and Northeast. The Quichuas are in the South 
along the Argentine border, and in the North along 
Lake Titicaca. The great central belt is Aymara, and 
the mixed blood there is Aymara and Spanish, some- 
what more virile than the Spanish Quichuas. 

The Aymaras, though conquered by Spain and 
recognizing that they were vanquished, have resisted 
absolutely the imposition of more than the thin layer 
of Caucasian civilization upon them. They are said 
to have aspirations for independence, but the uprisings 
which have taken place never have been general and 
usually have been due to local causes. Their most 
marked characteristic is the tenacity with which they 
have held to their language. It would seem absurd 
to say that a majority of the inhabitants of La Paz do 
not understand Spanish, because their intercourse with 
the Spanish-speaking classes must be assumed to give 
them some knowledge of that language, yet some 
experiences of my own showed that it was useless 


to depend upon Spanish. In the interior there are 
a few persons among the Indians who understand 
the language of the government, but the mass of 
them resolutely refuse to know it. The wife of a 
mining engineer, whose camp was only a few miles 
away from La Paz, told me her experience with the 
household servants. She had had to acquire enough 
of the Aymara tongue to give the ordinary household 
orders, and her children had picked up more, so that 
they got along very well. But no persuasion had been 
sufficient to secure the consent of the Aymaras to learn 
a little Spanish. In other mining camps there was the 
same difficulty. The miners always master a few phrases 
of Aymara and get along in that manner. 

It is not unusual to hear reports of uprisings, or 
attempted uprisings, by the Indians. I witnessed one 
of these occurrences at Guaqui, on Lake Titicaca. 
The Indians were said to be coming down a thousand 
strong. But when the local authorities exerted them- 
selves, and made a show of a few extra soldiers, what 
had been a noisy, drunken demonstration quieted 
quickly. However, there are instances in which the 
Indians give trouble, but in most cases the disturb- 
ances are purely local. The testimony is that the 
Indian population is to be feared only during periods 
of political tumult, when the government is divided 
into factions, or when one leader is fighting against 
another leader, and the bonds of authority are loos- 
ened. Then there is danger. The Indians make a 
pretence of joining one faction or the other, but it 
is only with the purpose of freeing themselves from 

Considering that the European race is relatively so 
small a part of the population, the Bolivian government 


has handled the Indian problem very well, — much 
better than it has been handled in the United States. 
Without question, the army, which is an army of con- 
scription, has been of great benefit, not only in the 
military control of the natives, but in the training it 
gives the Indians and the cholos. Military service is 
compulsory, but it is evaded by many of the Aymaras, 
and discriminating state policy does not seek to enforce 
it too rigidly. 

In spite of the commonplace and stereotyped talk 
about the worthlessness of the aborigines and their lazi- 
ness, all my observations led me to believe that the Bo- 
livian Indians are an appreciable element in the economy 
of the State, and are capable of assisting the national 
development. In the puna, or mountain regions, where 
most of them are found, Nature has not been so prodi- 
gal that they can live without work. They do labor in 
the mines, in tilling the fields, in tending their flocks, 
and as freighters. Their endurance is remarkable. 

But this native population is not enough for the 
development of the mines which may be expected dur- 
ing the next ten or twenty years. A mining popula- 
tion will have to be brought from other lands, and if 
not from neighboring countries, then from Europe, 
possibly Galicia, in Spain, and the northern districts 
of Italy. The white race endures the cold, and works 
in the rarefied air of the mines, 12,000 to 15,000 feet 
above sea-level, without serious impairment of its vital 
powers. I noted this from individual experiences and 
from what mining superintendents told me. 

The Bolivian government has a very liberal policy 
with respect to immigration and the public lands. 
Hopes are entertained that a scheme of European 
colonization on an extensive scale will be inaugurated 


within a few years. This must come with the devel- 
opment of the chaco, or tropical prairie and forest 
region, which extends from the eastern slopes of the 
Royal Andes to the Paraguay River. Some of the 
chaco is swamp desert, and some is baked soil, cov- 
ered with thorny scrub ; but much of it is fertile, and 
the climatic conditions are not unfavorable. Several 
years ago the government granted a railway conces- 
sion, known as UAfricaine, to the French Bank of 
Brussels, with the special purpose of securing the 
peopling of this region. The railway enterprise has 
not advanced rapidly. In time it may be carried for- 
ward and bring the chaco district into railway com- 
munication, not only with Santa Cruz, which is the 
tropical capital, but also with Sucre and the whole 
network of railways. Santa Cruz has encouraging 
possibilities for the European immigrant. 

The agricultural region in the Southeast, of which 
Tarija is the capital, is now partly settled, but there 
is room for a much larger number of tropical farmers 
in that locality. In proportion as the mining popu- 
lation grows, colonization may be encouraged, because 
there will be the inducement to the agricultural pro- 
duction which supplying the mining camps will de- 
mand. There also will be an overflow into farming 
and pastoral industries. 

The climate of Bolivia is so modified by the con- 
figuration of the country that more than a general 
statement is not possible. Lying within the torrid 
zone, the altitudes are to be taken into consideration 
as modifying influences. Fully 80 per cent of the 
population lives at altitudes above 10,000 feet, and 
not less than 60 per cent may be said to exist above 
12,000 feet. That is the height above sea-level of 



La Paz, which is the largest city, and of the central 
plateau. The mean temperature between 12,000 and 
13,000 feet varies in different years from 57° Fahren- 
heit to 59°. Above 15,000 feet it is 43°. The sea- 
sons, wet and dry, are of more consequence than the 
temperature. The central plain, the regions of the 
Cordilleras, and the chaco, are all in their climatic 
character hospitable to natives of the temperate zone. 
There are three distinct climatic belts or zones in 
the Bolivian territory, according to the altitude of the 
respective regions. These are called yungas, or hot 
valleys ; valles, or valleys ; and punas, or cold lands. 
Cabecera de valle, or head of valley, is a subdivision of 
the main valley division. The puna brava is also a 
subdivision of the puna. The mean temperature and 
the production of the several zones are as follows : 1 






Animal life 

Snovr region 
Puna Brava 
Puna . . . 

Cabecera de 
Valle . . 

Valle . . . 

Yungas . . 










Valerian and other 


Stipa bromus, baca- 
ris, bolax glebaria, 
ocsalis tuberosa, 

Wheat, vegetables, 

Fruit-bearing trees, 
corn, pulse, etc. 

Thick woods, coffee, 
cacao, sugar-cane, 
coca, rubber, cin- 
chona bark, and 
fruits of all kinds 

The condor or 
Andean eagle 

Llama, vicuna, al- 
paca, chinchilla 

Cattle, sheep, 
horses, donkeys, 

Improved spe- 
cies of the same 

All kinds of do- 
mestic animals 

Puma, tapir, and 
birds of beauti- 
ful plumage 

1 Sinopsis Estadictica y Geografica de la Republica de Bolivia, La Paz, 


The average annual rainfall is shown in the following 






















Bolivia has only had one revolution in a quarter of 
a century, that is, since the Constitution of 1880 was 
adopted. The revolution took place in 1898, when 
General Jose M. Pando, the head of the army, super- 
seded President Alonso. It was not a very serious 
affair, and the tranquillity of the country was not long 
disturbed. The foreign interests favored the change, 
for the one issue was whether the populous and pro- 
gressive Department of La Paz should be held back 
by the unprogressive sections of the country. Since 
then the Pando policy has prevailed, and has been 
continued by President Ismael Montes, who was 
elected as the candidate of the Liberal party with 
many evidences of popular approval, and was inau- 
gurated in August, 1904. Previous to that time he 
had been Secretary of War in Pando's cabinet. He 
has made the policy of railway and industrial develop- 
ment the principal programme of his administration. 
Senor Villazon, the Vice-President, was formerly Min- 
ister of Foreign Relations, and his election was very 


satisfactory to the foreign interests. Senor Fernando 
Guachalla, former minister to Washington and one of 
the leaders of the Liberal party, is looked upon as a 
prospective president. He has had wide experience 
in European diplomacy and in conducting negotiations 
with neighboring South American Republics, and en- 
joys an international reputation. His success at some 
future election would be very satisfactory to the foreign 

The president is elected by popular suffrage, or, in 
case there is no election by the voters, by the Con- 
gress. His term is for four years. A body of 35,000 
electors substantially constitutes the political power of 
Bolivia. The vote for president in the last three or 
four elections has varied little from these figures. 
The Congress is composed of 16 senators and 72 

The country is divided into eight political divisions, 
called departments. These are La Paz, Oruro, Beni, 
Santa Cruz, Potosi, Chuquisaca, Tarija, and Cocha- 
bamba. There is also the national territory of Colo- 
nias, which is of lessened importance since the Acre 
district that was part of it has been yielded to Brazil. 
The departments are subdivided into provinces, and 
these in turn into cantons or counties. The adminis- 
tration is highly centralized. Each department is 
governed by a prefect, the provinces by sub-prefects, 
and the cantons by officials known as corregidores, or 
magistrates. There are also alcaldes in the municipal 
divisions known as the vice-cantons. Municipal coun- 
cils are elective, but the administrative officials are 
named by the higher authorities. 

The school system I thought, from observations in 

Portrait of Ismael Montes, President of Bolivia 


different places, a creditable one. The country has 
700 schools, with more than a thousand teachers and 
with between 35,000 and 36,000 pupils. It has 15 
institutions called colleges, the pupils of which number 
2,200. There is also the national university. Presi- 
dent Montes hopes to have an American school 
established as one of the measures of his administra- 
tion, and has been assured by Washington officials 
of the cooperation of educators in the United States. 

Bolivia now observes only one national holiday. 
This is the 6th of August, the anniversary of independ- 
ence from Spain. The Church takes many days for 
its celebrations, and General Pando, when he was 
President, thinking that they formed sufficient rest 
and recreation for the population, abrogated various 
occasions which were celebrated as national holidays. 

The Bolivian legislation with regard to foreigners 
is satisfactory. They enjoy all the civil rights of 
natives, and are not subject to military service. They 
may acquire political privileges and be naturalized 
after a year's residence in the country. The recogni- 
tion of the rights of non-citizens with reference to 
mining claims is quite specific in the revised mining 
code. Foreigners get along very well in Bolivia, even 
in the remote localities, when they choose to adapt 
themselves to their surroundings. 

There is no prejudice against North Americans, 
who, in fact, are preferred to Europeans. For a while 
Englishmen were not welcome, — it was after one of 
the dictator presidents had set the English minister on 
a donkey, with his back to the animal's ears, and sent 
him out of the country. Great Britain did not feel 
that she could afford to land forces and cross the 


Andes in order to secure reparation for the insult, 
but for many years thereafter she refrained from 
sending a minister. Diplomatic relations, however, 
never were suspended, because the interests of British 
citizens were looked after by the ministers of the 
United States. In 1903 Great Britain accredited 
Mr. Beauclerc, her minister to Ecuador and Peru, 
to Bolivia also. He presented his credentials and 
was warmly received. The aggregate of English in- 
vestments in Bolivian mines is large. In 1905 Ger- 
many accredited a minister to Bolivia. 

The national revenues are derived from internal 
taxes and from both export and import duties. The 
chief source of internal revenue is alcohol, which is 
farmed out to a private company as in Peru. Under 
this arrangement the government does much better 
than when it itself undertook to collect the alcohol 
duties. As the export taxes were on the minerals 
and on rubber, the low state to which they fell during 
the world-wide depression of silver and copper is not 
difficult to understand. The controversy with Brazil 
cut off almost completely the returns from the rubber 
district. Now that source of revenue is gone for good, 
yet there is enough rubber territory left for Bolivia to 
expect a fair return from the domestic impost and the 
export tax. With the revival of the mining industry, 
the country may expect that the financial condition 
will improve, because a small export tax on the various 
minerals will bring in a good revenue. The weak- 
ness of the Bolivian fiscal resources, however, comes 
from the nation's isolated position without a seaport. 
Under its treaties with Peru and Chile, their products, 
both natural and manufactured, were admitted free of 


duty, but in 1905 Bolivia gave notice of her intention 
to terminate the commercial arrangement with Peru, 
this being a result of the convention with Chile for 
railroad construction. 

The international commercial movement shows a 
balance of trade in favor of Bolivia. For a ten-year 
period, ending in 1905, the total foreign commerce 
ranged from 34,000,000 to 54,000,000 bolivianos an- 
nually. In a recent year the value of the exports was 
25,170,000 bolivianos, and of the imports 16,253,000 
bolivianos, or, on the computation of 1 boliviano as 
equal to 42.6 cents, $ 10,57 1,000 and $6,8 26,000, 
respectively. Germany and Great Britain have even 
shares in the foreign commerce, but Germany's advan- 
tage is in the merchandise she exports to Bolivia. 
Sometimes the United States does not appear in sta- 
tistical abstracts as an exporter, but this is because 
consular invoices are made out for the Peruvian 
and Chilean ports through which the merchandise 
is entered. According J:o the Bolivian figures, goods 
to the amount of $400,000 to $500,000 are imported 
annually from the United States, but it is doubtful 
if this is anything like the full sum. Railway enter- 
prises carried on by American capitalists would mean 
largely increased importations of equipment, mining 
machinery, and merchandise. 

The treaty between Bolivia and Chile which was 
ratified in 1905 and put into effect, has a highly im- 
portant commercial and industrial significance. By its 
terms Bolivia formally yielded all claim to the littoral, 
or coast strip of territory, which was taken from her 
by Chile as a war indemnity in 1881. The principal 
feature of the treaty is the agreement of Chile to 


construct at her own cost a railway from the port of 
Arica to La Paz, the Bolivian section to be transferred 
to Bolivia at the expiration of fifteen years from the date 
of completion, Chile also giving Bolivia, in perpetuity, 
free transit through Chile and the towns on the Pacific. 
Bolivia is authorized to constitute customs agencies in 
the ports which may be designated for her commerce. 
Under this treaty Chile further agreed to pay to Bo- 
livia a cash consideration of ^300,000, and to discharge 
various liabilities recognized by Bolivia for certain 
claims both Chilean and American. 

Another provision of the treaty is that Chile will 
pay the interest, not exceeding 5 per cent, which 
Bolivia may guarantee on the capital invested in the 
construction of railways from Uyuni to Potosi, Oruro 
to La Paz, and via Cochabamba to Santa Cruz, La 
Paz to the region of the Beni and Potosi via Sucre, 
and Lagunillas to Santa Cruz. It is stipulated, how- 
ever, that Chile shall not be required to disburse more 
than ^100,000 a year, that the aggregate disburse- 
ments shall not exceed ;£ 1,600,000, and that the 
undertaking shall be void at the end of thirty years. 
The terms of this guaranty are somewhat indefinite, 
and their vagueness may give rise to controversy in 
the future. The present, immediate, and prospective 
value of this treaty to Bolivia is in securing a railway 
outlet from the interior to the Pacific at Arica, and 
thus being assured of a commercial artery which is 
bound to become a great highway of commerce. Its 
relation to the Panama Canal through the port of 
Arica I have explained in previous chapters. 

In order that the country's fiscal growth may keep 
pace with its industrial and political development, the 


government has sought to insure financial stability 
by recognizing the gold standard, somewhat after the 
manner of Peru. An important step in this direction 
was taken when, notwithstanding the silver production 
and the coinage of the white metal by the national 
mint, a monetary commission was created. This body 
matured a plan for the adoption of the gold standard. 
The report was accepted and recommended by the 
government to Congress at the Autumn session in 
1904, and was enacted into law. 

The financial system of Bolivia, as fixed by this 
legislation, may be said to be an approach to the gold 
standard. The basis of the currency is the silver 
boliviano of 25 grammes, 900 fine, and supposed to 
equal 100 centavos, or cents. In United States terms 
the boliviano is equal to 42.6 cents. In a recent 
year 19,187,610 kilograms of silver were coined into 
866,592 bolivianos. The law of November, 1904, 
fixed the value of Bolivian silver currency in terms 
of the English pound sterling. It declared that the 
pound sterling, or English sovereign, should thence- 
forth have a cancelling value of 12 bolivianos^ 58 cen- 
times ; also that from January 1, 1905, 50 per cent of 
the customs duties should be paid in gold coin at this 
rate, or, if a whole or part should be paid in silver, 
this quota should be subject to a surcharge of 5 per 
cent. Amounts less than one pound sterling may be 
paid in silver without being subject to the surcharge. 
By this law the Executive was empowered to suspend, 
should it become necessary, the mintage of silver coin ; 
the exportation of silver coin was declared free, and 
its importation into the Republic was prohibited under 
the penalty of confiscation. 


This gold approach law apparently caused no in- 
convenience to domestic trade, while it was a great 
help to Bolivia's international commerce and to her 
credit abroad. 

In 1905 the outstanding issues of the four banks 
which had the authority to emit notes was 9,144,000 
bolivianos. The paid-up capital of these banks was 
7,350,000 bolivianos. German and Chilean banks 
established branches in Bolivia in 1905. By a law 
passed in November, 1904, an issue of bonds was 
made to the amount of 2,000,000 bolivianos, to cover 
government obligations to the banks. They bear 10 
per cent interest, and the amortization, or refunding, 
is to be at the rate of 6 per cent each year, 320,000 
bolivianos being included in the national budget for 
interest and amortization. 

The chapter is becoming long. The conclusion 
shall be short. The treatment of the topics has 
been paragraphic. If it were not so, further chap- 
ters would be necessary for the exposition of the 
guiding motives of the Bolivian national policy. 
Much of it is as yet only national aspiration. But 
the basis is industrial and, therefore, sound. Bolivia 
shares with her West Coast neighbors the stimulating 
influence of the Panama Canal. Its economic effect 
is her industrial and commercial opportunity. 



fohn ^uincy Adams 9 Advice — Canning's Trade Statesmanship 
— Lack of Industrial and Commercial Element — Excess of 
Benevolent Impulse — Forgotten Chapters of the Doctrine's 
History — The Ecuador Episode — President Roosevelt's In- 
terpretation — Diplomatic Declarations — Spectres of Terri- 
torial Absorption — Change Caused by Cuba — - Progress of 
South American Countries — European Attitude on Economic 
Value of Latin America — German and English Methods — 
Proximity of Markets to United States Trade Centres — 

WHEN John Quincy Adams was Secretary of 
State, he issued instructions to the minister 
accredited to Colombia after that country's recogni- 
tion as an independent Republic. They related to 
the negotiation of a commercial treaty with a single 
nation, but their blunt advice might have been given 
to all Spanish America. " Let Colombia," wrote Sec- 
retary Adams, "look to commerce and navigation, 
and not to empire." 

I have shown in the preceding chapters how the 
West Coast countries are looking to navigation, and 
to the commerce that comes from the railway which 
was undreamed when Secretary Adams issued his in- 
structions to the minister to Colombia. They have 
laid the bases of industrial development in public 
works and private enterprise. They have prepared the 
approach to financial stability which is demonstrated 


by the adoption of the gold standard and the very- 
marked success of some of them in maintaining 
it. They have given a hint of the possibility of re- 
funding national obligations and of the profitable em- 
ployment of reproductive savings. They have sought 
to induce the currents of immigration, which in the 
case of South America never will rise with the phe- 
nomenal flood of the great West, but which may 
be expected to grow in depth and movement. They 
have given the proofs of political progress in the 
substitution of civilian presidents, bankers and sugar- 
planters, for the old-time military dictators, and they 
are working out their own destinies after their own 

But what of the United States ? 

The United States, in its relations with South 
American countries during the eighty years since the 
monitory words of John Quincy Adams were written, 
has not dreamed of political empire, and, unfortunately 
for its international prestige, has not looked to trade 
dominion. The lack of a commercial and industrial 
basis for the Monroe Doctrine never has been fully 
appreciated by the nation which promulgated it and 
accepted the responsibility for maintaining it, though 
some understanding of this defect has been felt in the 
countries to which the Doctrine applies, and a keener 
realization has been shown in Europe. 

Canning, by patient and adroit manoeuvres, was 
able to consolidate the mercantile classes as a counter- 
irritant to the prejudices of the English aristocracy, 
which sympathized with the Holy Alliance in its war 
against republican institutions. His cold and calcu- 
lating intellect perceived that the commerce which 


Spain had monopolized in her colonies was drifting 
to Great Britain as a result of their revolt, and he 
was resolved that it should be held. The threat was 
made to France that the independence of the colonies 
would be recognized in case Spain should seek to 
restore her former monopoly system and should at- 
tempt to stop the intercourse of England with them. 
When the British trade instinct began to manifest 
itself, the edifice of aristocratic intrigue crumbled. 
England supported the United States in the recog- 
nition of the revolted Spanish colonies, the Holy 
Alliance failed, and British merchants and manufac- 
turers sought the channels which Canning's statesman- 
ship had opened for them. They never have ceased to 
follow those channels. Much later came Germany. 
But the United States always has been indifferent. 
If they gave the subject any thought, public men 
failed to grasp why there was not invariably a warmer 
welcome to their promulgations, and why the grate- 
ful South Americans did not buy more goods in the 
United States. Now, sentiment alone does not bring 
trade. The Monroe Doctrine, beneficent as it has 
been, at no period has caused the sale of a dollar's 
worth of merchandise in Southern markets. Nor in 
their most benevolent and belligerent moods, when 
ready to fight all Europe in behalf of some other 
Republic, have the North American people ever 
ordered an extra ship's cargo from these markets. 
Fraternal sentiment does not change the currents 
of commerce, but commerce sometimes strengthens 
brotherly relations. And in this manner it will 
strengthen the Monroe principle by increasing the 
material interests of the United States, which in the 



past have been so immaterial in comparison with 
Europe. When they see and come in contact with 
the concrete Yankee nation as represented by trade 
and by industrial investments, the South Americans 
will understand better what the Monroe Doctrine is 
and why it is. The Panama Canal extends the respon- 
sibility of the United States. It enlarges the com- 
mercial opportunity commensurate with the increased 
responsibility, and the rest remains for the enterprise 
and the initiative of the individual citizen. 

Since these commercial and industrial elements can- 
not be entirely divorced from political subjects and 
international policies, a brief review of the Monroe 
Doctrine in its historic and political aspect may be 

Has national polity ever been more bragged about 
and less understood than this Doctrine ? It was 
dogma, creed for the American people, but with the 
vaguest ideas of what it meant. Heretofore one funda- 
mental error has obtained in the United States, — 
an error which explains why South America did not 
always welcome our paper assertions of it. In the 
loose discussion and affirmation of the principle we 
usually assumed that it was purely philanthropic, and 
that our national benevolence was to be exerted solely 
for the good of the weaker nations of the hemisphere, — 
an altruistic, even quixotic, mission on our part. Inter- 
nationally our motives are benevolent, but the Monroe 
Doctrine was asserted in the first place for the welfare 
and the self-protection of the United States. When 
John Quincy Adams told Russia that the Western 
Hemisphere was not to be used territorially for the 
extension of monarchical institutions, he made the 


declaration for our own safety. When that official 
pronouncement was applied to the Spanish colonies 
which lately had secured their independence, the fear 
that the establishment of kingships on this continent 
would threaten the United States was what gave the 
declaration force as the will of the American people. 
Protection of the neighboring infant Republics was 
secondary. The United States was no more dis- 
interested than was Canning in giving effect to the 
will of British commercial interests rather than to the 
prejudices of the British aristocracy against republican 

Nor were the revolted colonies themselves in that 
formative period so averse to European alliances. 
Some of them began their republican careers under dic- 
tatorships, but others turned to Europe. O'Higgins, 
the liberator of Chile, would have had another vice- 
royalty with a deputy, monarch from some European 
Power. La Plata, which is the Argentine Republic 
of to-day, sent the Rivadiva mission to Europe to 
borrow some member of a reigning house. It was 
Canning's perception that the effort to maintain a 
balance of South American power by lending Euro- 
pean princes as rulers would only add to the diffi- 
culties of preserving the European balance that caused 
the Rivadiva mission to be discountenanced. 

I recall this forgotten chapter of history very briefly 
in order to show that in their infancy not all the South 
American countries were averse to monarchical insti- 
tutions, and that therefore the objection by the United 
States to such institutions because of the danger to 
itself was the more marked. The Monroe Doctrine in 
the beginning was enlightened and necessary national 


selfishness, with incidental benefit to the nations pro- 
tected. It is only within the last half-century, since 
Maximilian was overthrown in Mexico, that the Ameri- 
can people have learned they have nothing to fear from 
kingdoms and empires in the New World, and it is 
during this period that the Latin-American Repub- 
lics have reaped the substantial and most disinterested 
results of the original assertion of the policy of the 
United States. 

Nor has aggressive South American support of the 
Monroe Doctrine been lacking. It was during the 
French occupation of Mexico that the Peruvian For- 
eign Office invited an interchange of views and an 
agreement on a general policy repudiating European 
interference. Argentina and monarchical Brazil did 
not at that time join heartily in the proposed concert 
of action, and Ecuador actually was trying to consider 
herself under a French protectorate. A coterie of 
individuals there had proposed an arrangement with 
Napoleon III, the Dictator-President of Ecuador 
favored it, and the Emperor had assumed that the 
protectorate was a fact. When a proposition was 
made to incorporate Ecuadorian territory into Colom- 
bia, the French minister at Bogota formally protested, 
under directions from his government, that this could 
not be done, because France had paramount interests 
of sovereignty in Ecuador. This episode is one of 
the most interesting of all the forgotten chapters in 
the history of the Monroe Doctrine. 

In Chile in 1864, at the period of Maximilian's 
attempted usurpation of Mexico, the Chamber of 
Deputies passed a resolution asserting the historic 


The Monroe principle, as it has been interpreted by 
President Roosevelt's administration, has two phases. 
One was asserted quietly and without calling out spe- 
cial comment. It was that no European military power 
should be established within striking distance of the 
American Continent. This assertion would apply to 
the Galapagos Islands and to naval coaling-stations in 
the Caribbean. 

The second phase, and the one which received 
more attention, was the President's declaration that 
the Doctrine was not to be used as a shield to prevent 
the collection of just debts. This interpretation some- 
times has met with prompt acceptance, and sometimes 
has been received with mild interrogation. The direct 
statement was given most specific endorsement by the 
distinguished public man who has had so much to do 
with shaping the policy of the United States in recent 
years. This was in the address of Mr. Elihu Root, 
when, as a private citizen, he proclaimed the rights of 
the United States as a police power over the affairs of 
all other Republics on the American Continent. 1 He 
was referring especially to claims and international ob- 
ligations, and the responsibility of the United States 
for redressing wrongs. In substance this was not dif- 
ferent from Secretary Olney's declaration during the 
administration of Mr. Cleveland, that the United States 
is practically sovereign on this continent, and its fiat is 
law upon the subject to which it finds its interposition. 
At that time Lord Salisbury could find no support in 
international law for the Monroe Doctrine, but Great 
Britain afterward, for reasons affecting her policy in 

1 Annual dinner of the New England Society in New York, November, 


other parts of the world, became willing to accept the 
Olney-Root interpretation, even to the point of letting 
her holders of Latin-American bonds look to the 
United States for the collection of their debts, though 
that responsibility never has been accepted by the 
United States, and never should be. 

Germany's acquiescence in the Monroe Doctrine 
has not been so complacent or so sudden, but this 
acquiescence may be accepted as a fact. A statement 
was attributed to Baron von Sternberg, the German 
Ambassador in Washington, that the Kaiser would 
not accept territory within the Monroe Doctrine's 
jurisdiction if brought to him on a silver platter. An 
interview with Chancellor von Biilow, published in a 
South American organ of German interests, was even 
more positive. 1 " We know," the Chancellor was 
quoted as saying, " that commercial relations are ce- 
mented by peace and confidence. . . . We have ab- 
solutely no political aspiration in the New World, but 
since we possess extensive industrial interests we desire 
to obtain the greatest possible participation in South 
American commerce." 

While the declarations oP diplomats sometimes may 
be accepted with reservation, the conditions in South 
America are such that no reason exists why their pro- 
nouncements with reference to the Monroe Doctrine 
should not be given full force. Except as to debts 
and debt collections, at most the question is an aca- 
demic one and has little practical bearing. In the 
matter of the international obligations, while the 
American people approve President Roosevelt's po- 
sition that the Doctrine shall not be construed to 

1 Deutsche La Plata Zeitung, 1903. 


enable debtor countries to avoid paying their just 
obligations, nevertheless in practice probably they 
would expect the national administration to ques- 
tion whether it is necessary for a European govern- 
ment to occupy any portion of the territory of a 
Latin-American Republic for debt collection. 

The United States is justified in fearing that the 
repression shown by the landing of troops for pur- 
poses of debt collection might assume the form of 
indefinite territorial occupation by a Power not Ameri- 
can, and that would be acquisition. The actual cir- 
cumstances would have to be considered ; but official 
disclaimers of such intention might not be sufficient. 
Nor would the experience in the reference of the 
Venezuela claims to The Hague Court be likely to 
convince the American people that territorial occupa- 
tion and administration could be permitted pending 
the settlement of the disputed questions. 

The excessive timidity with which the United States 
Senate approached the sane and sensible provision 
for a receivership in Santo Domingo, which was a 
sure way of preventing this question of European 
occupancy from arising, indicated that further edu- 
cation was necessary before this perplexing phase 
of the Monroe Doctrine could be assured of full 
support along the lines proposed by the national 
administration. But speaking in terms of actuality 
rather than of speculation, the perplexity relates 
chiefly to the West Indies, the shores of the Carib- 
bean, and possibly some of the Central American 
countries. The West Coast republics, in their great 
industrial strides and their immense advances toward 
financial and political equilibrium, give little reason 


to expect that the question will arise with reference to 

The Venezuela imbroglio in its influence on South 
American sentiment has to be understood in the light 
of the agitation which had been going on for the ab- 
rogation of the Monroe Doctrine. This movement 
had supporters in the United States as well as in 
Europe. The argument was, that, since we had gone 
to the Philippines, and since Europe had great 
interests in South America, we no longer had a 
right to say to the European Powers that they 
should keep hands off. Instead, they were to be 
told to carry out their colonizing aims, which only 
could be successful by territorial acquisition. Until 
the United States undertakes to exercise sovereignty 
on the European Continent or along the Mediter- 
ranean, there can be no comparison. And until the 
continental Powers adjust their balance of greedy and 
mutually distrustful ambitions, so that the Balkan 
States may enjoy the privileges of civilized govern- 
ment, their mission to civilize South America and 
establish a balance there cannot be expected to receive 
serious attention. 

And let not the notion obtain that there can be a 
geographical limitation of the responsibility of the 
United States. After the war with Spain, when our 
new duties pressed heavily on us, the suggestion was 
made that we might draw the line, say at the Equator, 
and that we should not go farther afield. It was an 
impracticable suggestion, and does not need discussion 
now. Having the isthmian canal to protect, we could 
not, if we would, limit our responsibilities by a line 
anywhere through South America. 


Another aspect of the same subject may be con- 
sidered in brief space. This is the figment of terri- 
torial ambition and territorial absorption on the part 
of the United States. It is a phantom to the well- 
informed Northern mind, yet to the South Ameri- 
can imagination it is a spectre. -In the Republic of 
Washington and Lincoln are two classes. One talks 
vaguely on the Fourth of July, and other occasions of 
national boasting and self-gratulation, about the des- 
tiny of the rest of this hemisphere to become a terri- 
torial appanage of the United States. The majority 
of these talkers have the vaguest possible notion of 
the geography of the Southern Continent, of the 
physical conditions, and of the political relations. 
If they knew more, they would talk less. At 
home their outgivings receive little attention, but in 
South America they are given undue importance, 
and often distorted into supposed policies of the 

The other class not only entertains no idea of 
territorial absorption, but dreads the notion of the 
due and just exercise of our influence. It looks on 
South America as a nest of revolutions with which 
the United States should have nothing to do, ridi- 
cules the possibilities of commerce, and professes dis- 
belief in the capacity for progress. 

After the war with Spain, in Latin America the 
same idea was entertained of the good faith of the 
United States that was held in Europe. The belief 
was that in relation to Cuba it would be a case not 
only of England in Egypt, but of outright annexation. 
This class of prophets have not fully recovered from 
the staggering effect of the withdrawal of the United 


States from Cuba. It made a deeper impression in 
dissipating their jealousy and fear of the giant Repub- 
lic of the North than any of them were ready to admit. 
Yet I have heard South American public men of the 
reactionary group, who would have been loudest in 
condemning the United States for staying in Cuba, 
and would have used it as an object lesson to terrify 
their people with the shadow of the North American 
Colossus, seriously argue that we should have re- 
mained, that annexation is inevitable, and that this 
should have taken place at once instead of being 
allowed to await the normal evolutionary process. 
My friend Don X, whom I had known in Mexico, 
when I met him in Buenos Ayres pointed out to me 
the errors of my own contention, that in getting out 
of Cuba we had kept the national faith and had done 
our duty. " Cuba," he said, " belongs to you. You 
should have taken her. We would have used it as 
an awful example against you,* but we would have 
known you were only doing what you had a right 
to do." 

Thus it appeared that the reactionary South Ameri- 
cans held it as a grievance against the United States, 
that we did not give them an example of overween- 
ing territorial ambition. But the proof that we were 
not greedy permeated all classes ; helped to convince 
the intelligent population, and even the unintelligent 
mass, that there could be such a thing as a nation 
with disinterested purposes, and that nation the Yankee 

The position of the United States with reference 
to absorption was set forth so fully in the letter of 
Secretary Hay to Minister Leger of Haiti, and this 


position was approved so fully by the American 
people, that no further declaration is required. 1 

That the attitude of the United States is better 
understood and better appreciated in the farthest 
countries of South America was shown during the 
presidential campaign of 1904, in an article on the 
views of the two candidates, which was published by 
an influential Chilean paper. 2 

In considering the economic effect of the Canal on 
the West Coast countries it has not been my thought 
to discuss in detail its political influence. Moral influ- 
ence is the better term. This is one of the great forces 
that counts in their industrial development. The 
United States is on the Isthmus. It is there to stay 

1 Department of State, February 9, 1905. 

Dear Mr. Minister, — In answer to your inquiry made this morn- 
ing, it gives me pleasure to assure you that the government of the United 
States of America has no intention of annexing either Haiti or Santo 
Domingo, and no desire of acquiring possession of them, either by force 
or by negotiations, and that, even if the citizens of either of these republics 
should solicit incorporation into the American Union, there would be no 
inclination on the part of the national government, nor in the sphere of 
public opinion, to agree to any such proposal. Our interests are in har- 
mony with our sentiments in wishing you only continued peace, pros- 
perity, and independence. 

Very sincerely yours, JOHN HAY. 

Mr. J. N. Leger, &c. 

2 "In reality, it is to the interests of the United States that the South 
American Republics should look up to them as their best friend, so that 
they may gradually open their markets to the enormous products of North 
America, and that the overflow capital of the great Republic may find 
good investments, so that they may hope some day to expel entirely Euro- 
pean capital. All violent measures which may bring forth the distrust of 
South Americans and European intervention are entirely against the best 
interests of the United States, and would be considered in that country 
a great political blunder and an attempt against its economic develop- 
ment." — El Met -curio , Santiago. 


for all time. Its presence, rightly understood, gives no 
support to those who dream of territorial aggrandize- 
ment, or to the other class who see spectres and have 
nightmares. But its authority, fully established in the 
control of the Canal Zone, does give assurance of in- 
creased stability to the various governments, and this 
stability is the greatest inducement that they can offer 
to the investment of foreign capital. The Monroe 
Doctrine became automatic from the ownership of the 
interoceanic waterway by the United States ; yet the 
influence on the Pacific coast countries will be even 
more beneficial in relation to their internal affairs than 
with reference to their protection from possible Euro- 
pean aggression. What is needed is for the Fourth of 
July orator who ignorantly hints at territorial absorp- 
tion, either to inform himself on the subject and to un- 
derstand how the Panama Canal becomes the greatest 
factor in enabling the Spanish-American Republics to 
work out their own destinies, or else for him to confine 
his ambitious dreams to Canada. Let Canada be his 
theme, while Latin America solves her own problems. 

In the analysis of the South American countries 
credit should be given them for what they have ac- 
complished and are accomplishing among themselves. 
A very competent observer in an exhaustive volume has 
noted the change in the Spanish character in the South 
American countries, the modifying influence of environ- 
ment, and the growth of the constructive element. 1 

It may be said that every boundary dispute is either 
settled or in process of settlement. The inheritance 
of these controversies from the Spanish and Portu- 
guese colonial epochs was a grievous one, because in the 

1 Charles E. Akers, South America, 1854-1904, London, 1904. 


vast interior regions it was impossible to have positive 
knowledge of the limits. The doctrine of uti possidetis 
was wittily translated by a Spanish diplomat as mean- 
ing that the territorial possession of the discovering 
nation extended from the coast as far as the eye could 
not see, to whatever frontier the discoverer could im- 
agine. But no serious difficulties have arisen over the 
application of this principle. The respective parties 
in interest are settling these border disputes without 
going to war. All the boundaries will be delimited 
before the interoceanic waterway is completed. 

Their limits fixed beyond dispute, the question of 
the permanent relation of the countries to one another 
becomes important. South America for South Ameri- 
cans is a wholesome doctrine, so long as they are willing 
to work in their respective spheres for the advancement 
of the whole continent. As some of their writers have 
pointed out, it never can mean a continental alliance. 

While much is made at times of the distrust of the 
United States, a state of mind which is disappearing, 
it is usually overlooked that there is just as much dis- 
trust of one another among themselves. Though it 
cannot be said that racial antipathies exist, there are 
national jealousies. The little Republics fear the 
big ones. When the talk was loudest about an alli- 
ance of Chile, Argentina, and Brazil, the other South 
American commonwealths refused to believe that such 
an agreement would not mean their own destruction. 
At least one of them caused representations to be made 
to Washington, asking whether it could not be taken 
under a United States protectorate. And it was a far- 
away Atlantic coast country, too. The smaller and 
weaker nations feel that, like the fowl in Voltaire's 


fable, they might express their preference as to how 
they should be carved up, but in objecting to be 
carved up at all they would be told they wandered 
from the question. 

There is really only one acute South American 
question, which is that between Chile and Peru rela- 
tive to Tacna-Arica, and since it does not enter into 
the economic conditions of political progress I omit 
its discussion here. 

In the European attitude with regard to the com- 
mercial and industrial bases of the Monroe Doctrine 
has been much that is both grotesque and humorous. 
But at the bottom of it all is the full appreciation of 
the economic value of Latin America. France fre- 
quently chides herself for her failure to profit more by 
the moral influence of Latin ideas and literature on 
the neo- Latin countries. " We know," wrote one au- 
thority, 1 " the grand scheme of economic absorption 
of the Latin Republics by the imperialism and the 
industrialism of the North." 

The imperialism may be dismissed, but the indus- 
trialism of the United States, when it once ventures 
into South America and becomes rooted, is worthy of 
the attention which European economists give it. 

Though Germany and Great Britain are engaged in 
a ceaseless struggle for supremacy, the French writer 
bewailed the Anglo-Teutonic commercial movement as 
if it were a joint one. He proposed Latin-American 
leagues ; the Spanish moral and economic re-conquest 
of the colonial empire with the aid of France ; a kind 
of family pact, Hispano-Americanism as opposed to 
Pan-Americanism or Germanic-Anglicism. On their 

1 La Vie Latine, Paris, 1904. 


side the Germans complain of the loss of German 
prestige in South America, and some of their writers 
advocate a European trade combination against the 
Yankee invasion of the Southern Continent, just as 
a similar combination is proposed in Europe. Each 
nation in the international trust would expect to get 
the lion's share of the benefit. John Bull occasionally 
has a tearful period of brotherly affection, and asks 
Uncle Sam to poke his long ringers into the hot 
coals where the English walnut has been dropped. 

With regard to these suggestions it may be said 
that in international commerce racial affinity counts 
for as little as do sentimental ties. The presence of 
English, German, or French capitalists and immigrants 
in any foreign country naturally draws some home 
trade, but this has little influence on the general vol- 
ume. European colonization of South America need 
not mean Europeanizing it commercially any more than 
politically. In spite of the large German colonies in 
southern Brazil, Germany lost commerce with that 
nation, while she gained it with other South American 
countries. It is often remarked that much of Ger- 
many's profitable traffic is with British colonies. 

In an analysis of European interests in South 
America it is necessary to distinguish between the 
securities or various forms of national debts and the 
actual investments in trade and industry, including 
railways and mines. While the statisticians vary 
widely in their estimates, it is reasonable to conclude, 
from an examination of the leading ones, that Great 
Britain has $2,000,000,000 in South American invest- 
ments, of which $300,000,000 to $350,000,000 may 
be assigned the West Coast ; Germany has from 


$475,000,000 to $500,000,000, with possibly $150,- 
000,000 in the Pacific countries ; and France, with 
about the same amount, has West Coast investments 
reaching $100,000,000, her Chilean holdings amount- 
ing to $42,000,000. 

The relative characteristics of the two principal 
European competitors in South America are very 
marked. The Germans are slow, cautious, persist- 
ent; taking few pioneering risks, but always on the 
ground, filching markets and industries on a thor- 
oughly scientific system. They are very largely in 
the commission trade and in banking. It may be said 
without injustice, that, in proportion to the amount 
of actual capital risked, Germany has contributed the 
smallest share of all the leading European nations to 
South American development, and has done least for 
industrial projects. 

Great Britain on her part has gone in with her cap- 
ital, roystering and swaggering, and always has blun- 
dered boldly and courageously. The personnel of 
her enterprises has been honeycombed with younger 
sons, dependants of the London directors, and the 
whole class of inefficient parasites which clog the ad- 
ministration of English industrial undertakings abroad. 
Her capitalists have built railroads in the mountains, 
where the tropical torrents require enormous resisting 
works, just as though they were constructing lines 
across the plains of India or from London to Liver- 
pool. The stolid and dogged British investor has 
paid for it all, and has kept on pouring more money 
into these enterprises. So it came that he floundered 
into the untold wealth of the Peruvian guanos, stum- 
bled into the nitrates with their incalculable riches, 


drifted into the golden stream of mining lotteries, 
and even fell upon fortunate and undeserved sur- 
prises in the way of profitable railway projects ; while 
the expansion of his banking facilities, sometimes un- 
dertaken with a recklessness that would paralyze con- 
servative bankers, brought him returns that justified 
further plunges into doubtful financial enterprises. 
As a whole, this blundering, or even stupid, English 
policy of investments has paid pretty regular divi- 
dends, — in all probability greater in proportion to the 
capital than the timid and over-cautious German in- 
vestor has received. When the United States fully 
appreciates the field which the Panama Canal opens 
on the West Coast of South America, her captains 
of industry will be as bold as the Britishers, but not 
so recklessly stupid, in their preliminary plunges. 

These observations bring the subject back to the 
point that in international rivalry the country does 
best that meets its competitors on the vantage ground 
of better and cheaper goods, rather than by depend- 
ence on racial sympathy or fraternal sentiment. The 
great point for the United States is the very marked 
advantage in which it is placed with reference to the 
West Coast countries of South America by the Canal. 
The trade centres of the Eastern States and of the 
Mississippi Valley will front on the Pacific, as they 
now front on the Atlantic and the Caribbean. Prox- 
imity of markets is a clear gain, and it will help the 
commerce of the United States to adventure abroad. 
In that sense, for a section of South America it defi- 
nitely enlarges the commercial basis of the Monroe 

But proximity alone is not enough. The United 



States enjoys no extensive barter with the Caribbean 
countries, notwithstanding their nearness. Brazil and 
Argentina are as close to Europe as to the United 
States. The need of expanding the home market 
will be stronger in the future, and when that is felt 
more keenly the north and south trade-wave will 
deepen its channel. 

Always there will be resourceful, persistent compe- 
tition. The Pacific coast does not become a mare 
clausum. The United States would not and could 
not make it a closed sea. The foreign commerce 
of South America is approximating $1,000,000,000. 
Of this amount relatively $600,000,000 is exports 
and $400,000,000 imports. The ratio of the West 
Coast to the entire continent is about 25 per cent; 
that is, on the basis of $1,000,000,000 it will have 
$250,000,000 foreign commerce. The United States 
is in this trade to the amount of $175,000,000. In 
one year its exports were $53,000,000 and its im- 
ports $140,000,000. The disproportionate balance 
was caused largely by the coffee and rubber imports 
from Brazil. But on the West Coast the balance is 
in its favor. 

I have written this chapter as though the admoni- 
tion of John Quincy Adams had been addressed to 
my own country instead of to another commonwealth. 
But it again may be said that empire is not the na- 
tional thought of the United States, and lust of ter- 
ritorial dominion is not a serious malady with the 
strongest South American republics. Commerce and 
navigation are based on agricultural and industrial de- 
velopment. The interoceanic waterway renders cer- 
tain the permanent influence of United States capital 


on the industrial and commercial life of its southern 
neighbors. It is for them to reap the larger benefit 
in the increased development of the national resources 
and the more stable political institutions. Some of 
them chafe under the implication that the Monroe 
Doctrine will be necessary in the future, and view it 
as a shadow rather than a shield. The new basis, the 
economic basis, of that doctrine which is provided by 
the Panama Canal furnishes the foundation on which 
its evolution may begin, so that they may get out from 
under the shadow while enjoying the sheltering pro- 
tection of the shield. 

The lessons in physical and commercial geography 
embraced in these chapters have shown that the geo- 
graphical sphere of the Canal includes the Amazon 
basins, the Argentine wheat plains, and the Andes 
treasure box of mines from Panama to Patagonia. 
They have shown how railroad progress is crowd- 
ing mule-trail civilization, how the arteries of trade 
are lengthening, how fresh commercial currents are 
developing, how the new industrial life is unfold- 
ing, and how the problems in the political condi- 
tions of the Western Hemisphere are being solved. 
They give promise of the deferred realization of 
Henry Clay's population prophecy. Finally, they 
bid the citizen of the United States to look out 
from the windows of his own self-contained nation 
down the South American Canal line, and, accept- 
ing the responsibility which that grand enterprise has 
brought, to share in the opportunity which it has 
created for contributing to the civilization that comes 
through the spread of commerce and industry. 


The relation of the Panama Canal to ocean transportation 
Routes is best exhibited in the painstaking tables prepared by 
the Hydrographic Office of the United States Navy. These 
show, in terms of nautical miles, the comparative distances, 
which are as follows : 






























c ° 




























































































































































rt O 


















3 C- 

o c 





oj q 































































































































































































































San Francisco 


Santa Barbara 

San Diego 

San Bias 



Salina Cruz 

San Jose 










Islay (Mollendo) 






1210 Talcahuano) onoepcion 

1194 T.nta 


Punta Arenas 

(Sandy Pt., Chile) 
















a) w 











































































































































New York 








Newport News 




Key West 


Saint Thomas 

Port Castries 




Rio de Janeiro 


Buenos Ayres 

Punta Arenas 

(Sandy Point) 




By Cape of Good Hope 




N. E. 


<D C 

c o 

° S £ 

. mon- 

r— 1 

3 <u ? 







— > S 

New York to Bombay 


) 12670 





" " Colombo . 


) 11730 





" " Calcutta 


1 13710 





' " Singapore . 







' " Hongkong . 







' " Shanghai . 






i « 

' " Yokohama 







' " Melbourne 







4 " Sydney . . 






" " Wellington 






By Suez Canal 




. N.E. 











ered : 





New York to Bombay .... 





" " Colombo . 





" " Calcutta . . 

. 10460 




" " " Singapore . 

. 10170 




" " Hongkong . 

. 12110 




" " " Shanghai . 

. 12920 




" " " Yokohama . 

. 13820 




'« " " Melbourne . 

. 15030 




" " " Sydney . . 





« u a Wellington . 





By Magel- 

By Cape 


! Ports 

lan Strait 








~ CO 


— i to 

— ! t3 <U 


"2 w 

03 CD 

— , co 
■— ! T3 <D 

.3 ft) > 

3 to > 

C/2 > 

p V > 

" CD 


" <D 

Melbourne to New York 





Sydney " " 
Wellington " " " 









Valparaiso " " " 





San Francisco " " " 





Esquimalt " " " 





Honolulu " " " 





New York to Valparaiso 





" " « San Franciso 

3. . 





" « Esquimalt . 





" " Honolulu . 







Aconcagua, Mt., 201 
Aconcagua River valley, 201 
Acorta, Senor, first vice-president 

of Peru, 1903, 169 
Acre rubber territory, 136, 327, 

3* 8 > 333, 336, 344, 34$ 

Adams, John Quincy, his advice to 
Colombia, 3515 and the Monroe 
Doctrine, 354 

Advertising, Chilean, 202, 204. 

Agassiz, 2. 

Agriculture, factor in growth of 
population, 8 ; " cultivation in 
the clouds," 67, 68 5 develop- 
ment in Peru, 124-130, 134-136, 
146, 147, 154^ 158-161 ; in 
Chile, 262-266 ; in Bolivia, 307, 

3 2 7-33°> 34i, 34* 

Aguacate, or alligator pear, 28, 29 

Aguardiente, or cane rum, 27, 128 

Akers, Charles E., 364 

Alameda de las Delicias, Santiago, 
204, 205 

Alausi, Ecuador, 65 

Alcohol, thirst of Indians for, 27, 
121, 308 ; by-product of sugar, 
128 ; injurious to Indians, 156 ; 
source of revenue, 176, 346 ; a 
possible excuse for its use, 295 

Alfaro, , former president of 

Ecuador, 71. 

Alligator pear, 28, 29, 86 

Almirante Barroso, Brazilian war- 
ship, 189 

Almuerzo, mid-day breakfast, 27 

Alpaca wools, 116 

Altiplanicie, or Great Central 
Plateau, 279, 297 

Alzamora, Dr. Isaac, former vice- 
president of Peru, 96 

Amachuma, Bolivia, 293 

Amazonian, commerce affected by 
Canal, 6, 785 outlet to coast, 120, 

137-139, i4i» *4 a > J 45, i47, 
1 79, 3 35 5 railroad extension into 
Amazon country, 140,- Pichis 
road opened, 143 

Ambato, on Guayaquil and Quito 
Railroad, 69 

Americans, in Canal Zone, 53-56} 
as railway builders in Ecuador, 
65, 66; builders of jetty at Pa- 
casmayo, 79 ; in Peruvian rail- 
way projects, 80, 106, 147, 159; 
in silver mines, 107, 131, 132 ; 
at Arequipa, 117; composing 
Inca Company, 119 ; irrigating 
Piura district, 125 ; relations 
with local authorities, 175 ; in 
Iquique, 185; project a bank in 
Valparaiso, 270 5 resident at La 
Paz, 312 ; syndicates interested 
in Corocoro mines, 322 ; miners 
at Tipuani placers, 323; pro- 
jected American school, 345 ; 
not unwelcome in Bolivia, 345 ; 
advantages from Americans' in- 
vestments, 347 

Amotope district, Peru, oil-produc- 
ing, 131 

Ancachs, Department of, mineral 
wealth, 130, 133 

Ancon, Mt., 45 

Ancon, Port of, 46, 82, 83, 125 

Andes, 4, 6, 79, 81, 100, 118, 123, 
130,262,269,280,321. Other- 
wise called Cordilleras 

Angaraes district, Peru, gold-pro- 
ducing, 132. 

Angostura de Paine, narrowest part 
of central valley, 263, 283 

Annexes to hotels, 3 1 



Anona, same as Cheremoya 

Antarctic current, see Humboldt 

Antofagasta, distance from Panama, 
12 j commerce, 15 ; bad harbor, 
86 ; sketch of, 187 j copper out- 
put, 228 j silver in district, 2305 
town seen from hills, 293 

Apilla-pampa coal district, 326 

Apurimac River valley, southern 
Peru, 128 

Arana, surveys and explorations of, 

Araucanian Indian stock, 251, 

Arequipa, capital of southern Peru, 
109, no, 114-1175 district is 
gold-producing, 132 ; sulphur- 
producing, 133 

Arequipa, lost in Valparaiso harbor, 

Argentine, 5, 6, 8, 9 

Arica, distance from Panama, 12 ; 
minerals exported from, 16 } 
vicuna rug industry, 122 ; sketch 
of, 180-182; export port for 
Chilcaya borax, 326 

Army life, effect on native con- 
scripts, 1565 the Chilean roto in 
the army, 254 

Aspinwall, William H. , statue to, 

Asta-Barragua, Mr. George, 241 
Athletic sports popular in Santiago, 

Aullogas silver deposit, 318 
Avenida, or Avenue Brazil, Val- 
paraiso, 190 
Avocat, or alligator pear, 28 
Aymara Indians and dialect, 154, 
252, 302, 304, 307, 311, 338- 
Aymaraes district, Peru, gold-pro- 
ducing, 132 
Ayoayo, Bolivia, 305 

Bacon, Francis, on sea voyages, 

Baggage, care of, 3 1 

Bailey, Professor, director of Har- 
vard astronomical observatory, 

Balboa crossed Isthmus, 41 

Balmaceda, Jose Manuel, former 
Chilean president, 236, 237, 243, 

Balsas, or house rafts, 61, 121 

Banks and banking, 34, 72, 99, 
177, 178, 256, 270, 274-276, 

Barandiaran, surveys and explora- 
tions of, 142 

Beauclerc, Mr., English minister 
to Bolivia, 346 

Beer, 26 

Beet-root industry, 265 

Beggar and political chiefs, incident 
concerning, 165 

Bello, Andre, author of Chilean 
Civil Code, 206 

Beni, territory at head-waters of, 

3*7, 335, 344, 34? 

Bertrand, Mr. Alejandro, civil en- 
gineer, 215 

Birds, on the coast, 79; in a tree- 
less country, 288, 292 

Birth and death rates, in Lima, iooj 
in Peru, 152, 157 ; in Chile, 
252, 256-258; in Bolivia, 310 

Bismuth production of Bolivia, 325 

Black Mountain Peak, on Cen- 
tral Railway, 103 

Blaine, Secretary, concerned in 
Galapagos Islands negotiations, 

Boer colonies in South America, 

Bogota, pure Spanish spoken, 24 
Bolivia, relation to Canal, 2, 3 j 
population, 4; commerce, 15, 
16, 86, 88 ; customs, 27 ; mar- 
ket for Peruvian goods, 126, 128 ,• 
railroad building, 141, 187 ; na- 
tives, 156; shipping points, 187, 
188 ; description, 278-350 
Boliviano, United States and Eng- 
lish equivalents, 316, 317, 323, 
347, 349 



Boll weevil, Peruvian cotton free 
from, 126 

Borax deposits, 132, 325 

Brandy, Pisco, 85 

Brazil, (tropical) coffee trade, 8 j 
(temperate) cattle and wheat in- 
dustries, 8 5 boundary disputes, 
136, 146 j coffee product, 161, 
328; controversy over Acre rub- 
ber territory, 327, 333 

Bronze in Chorolque district, Bo- 
livia, 320 

Bryce, Professor James, 1 64 

Buenaventura, 59 

Bull-fight, at Lima, 95 ; abolished 
in Chile, 213 

Bulnes, General Manuel, former 
Chilean president, 233 

Business-letter, the terse English, 

Caballitos, or grass canoes, 79 

Cabildo of Quito, resolution adopted 
by, 66 

Cacao, or chocolate, Ecuador's pro- 
duction of, 63 

Caceres, President, his plans con- 
cerning central highway, 143, 

Cachipuscana, Lake, 118 

Cailloma district, Peru, silver-pro- 
ducing, 132 

Caja de Ahorros, or Savings Bank, 
Santiago, 256 

Cajamarca, 80, 132 

Calamarca, 306 

Calancha, Friar, concerning the 
South Sea and the Southern Cross, 


Calca district, Peru, iron produc- 
tion, 133 

Calchas, Bolivia, copper deposits, 

Caldera, 5, 188 

Calderon, Mr. and Mrs. Ignacio, 
of La Paz, 312 

Calderon, Senor Manuel Alvarez, 
Peruvian minister to Washing- 
ton, 1903, 169 

Calderon, Senor Serapio, second 
vice-president of Peru, 169 

Caledonian cross-cut channel pro- 
jected, 42 

Caleta Buena, 222 

Caliche ', nitrate layer, 220 

Callao, 6, 12-14, 83,84 

Camache, suburb of Iquique, 185 

Camana district, Peru, copper-pro- 
ducing, 132 5 sulphur beds, 133 

Campaign humor, instance of, 240, 

Campana, J. J., of Iquique, 219 

Canal Commission, 52 

Canal Zone, 18, 19, 37-56, 364 j 
see Panama, Isthmus of 

Candamo, Senor Miguel, late presi- 
dent of Peru, 166-172 

Cane rum, or aguardiente, 27, 128 

Cangallo district, Peru, sulphur 
beds, 133 

Canning, George, the statesman, 

352> 355 
Canta district, Peru, coal deposits, 


Cape Pillar, 197 

Capelo, Joaquin, Peruvian engineer 
of central highway, 143 

Capopo district, copper mines in, 

Carabaya, Province of, gold mines 
developed by Americans, 119, 
120, 132 

Caracas, Bay of, 60 

Caracoles silver mines, 230 

Caracollo, Bolivia, 302 

Casapalca smelting-works on Cen- 
tral Railway of Peru, 103 

Castilla, Joaquin, Peruvian patriot, 


Castrovirreyna district, Peru, silver- 
producing, 132 

Cauca, valley of, 13, 59 

Caucho, second quality crude rub- 
ber, 134 

Caylloma district, Peru, coal de- 
posits, 133 

Centenarians in San Juan valley, 



Central Cordillera, 129, 137 

Central highway, route from the 
Amazon to the Pacific, 142-146 

Central Plateau, or Altiplanicie, of 
Bolivia, 279, 297 

Central Railway, 100-105, 107, 
149 } same as Oroya Railway 

Central valley of Chile, 262-264 

Cerro de Azul, 84, 125 

Cerro de Pasco, district and mines, 
105-107, 131-133, 140, 177 5 
railway, 106, 107, 140, 146, 159 

Chacabuco, Hill of, head of central 
valley, Chile, 262 

Chachani, mountain seen from Are- 
quipa, 109, 112 

Chacon or tropical prairie and forest 
region, 341 

Chagres River, used as a means of 
crossing Isthmus, 41 5 advocated 
by Champlain, 42, 43 ; one of 
three proposed by Lopez de 
Guevara, 43 ; engineering prob- 
lems presented by, 44 

Chala, Peru, 85 

Challapata, near Lake Poopo, 298 

Chamber of Commerce, Lima, 99, 

Champlain, concerning Panama and 
possibility of canal, 43 

Chanaral, location of copper-smelt- 
ing works, 188 

Chancay district, Peru, sulphur beds, 


Chanchamayo valley, cane-produc- 
ing area, 128 ; land-grants to 
Peruvian Corporation, 140 ; de- 
velopment of, 146, 160 
Charquiy jerked beef, 33 
Chauncey, Henry, statue to, 39 
Chayanta, tin mines in district, 314; 
copper deposits, 322 j gold 
claims, 324 
Checcacupe, Peru, 119 
Cheremoya, South American fruit, 

28, 29 
Chicha t native drink, 26 
Chicla, on Central Railway, 101 
Chilcaya borax field, Bolivia, 325 

Chile, relation to Canal, 2, 16; 
foreign trade, 9, 16; saltpetre 
beds, 16, 2175 policy toward 

Galapagos Islands, 



tion of, 180-277 j treaty with 

Bolivia, 346 
Chilete (Ancachs) district, Peru, 

lead deposits, 133 
Chili, valley of the river, 109, 117 
Chiloe Archipelago, 196, 273 
Chimborazo, 60 
Chimbote, 81 
Chimneys, lack of, in Santiago, 

Chimore coal district, 326 
Chinchas, or guano islands, 85 
Chinchona tree, 329 
Chinese, merchants of Callao, 84 j 

population of Lima, 96, 97; 

land-owners, 158 
Chira valley, projected irrigation, 

Chivalry of Chilean men, 212 
Chocaltaga, tin deposit of, 315 
Chocaya, tin district, Bolivia, 315 
Chocolate (cacao), 63 
Cholos, 105, 136, 154, 155, 157, 

285, 295, 3°8, 311, 338, 340 
Chonta district, Peru, mercury- 
cinnabar production, 133 
Chorolque, tin mines in district, 

315 j silver mines, 318, 320 j 

bismuth deposit, 325 
Chosica, on Central Railway, Peru, 

Christ of the Andes, 269 
Chuncho Indians, 154 
Chuni, potato eaten by natives, 33 
Chupe, native dish, 28, 292 
Chuquicamata, copper mines in the 

District of, 228 
Chuquisaca gold region of Bolivia, 

Chuquiyupu River, meaning of 

name, 324 
Churches, of Guayaquil, 615 of 

Paita, 76 ; of Lima, 91, 97, 98 j 

of Arequipa, 115 j of Santiago, 




Clay, Henry, 3, 371 

Climate, along West Coast, 59 j 
of Guayaquil, 62 ; of Lima, 
100 j of Arequipa, 109 ; of San- 
tiago, 209, 213 j of Chile, 273 j 
of Oruro, 3005 of Bolivia, 341- 


Clubs, of Callao, 84 ; of Lima, 
96 ; of Iquique, 185 ; of San- 
tiago, 211 

Coal, in Peru, 107, 131, 133 j in 
Chile, 194, 229 ; consumption 
of, in nitrate industry, 222 j 
Bolivian deposits, 326 

Coca, plant from which cocaine is 
made, 156, 328, 329 

Cochabamba, Bolivia, 335 

Cochrane, Lord, statue to, 190 

Codecido, Mr. Emilio Bello, of 
Santiago, 211 

Coffee, from tropical Brazil, 8 j 
Peruvian settlers compete with 
Brazil in coffee culture, 161 j 
Bolivian trade in, 328 

Cololo, mountain peaks in Peru, 

Colombia, relation to Canal, 2, 3, 
13 5 Colombian control of Isth- 
mus, 46 j J. Q. Adams's advice, 


Colon, distance from New York, 
New Orleans, Panama, and Liver- 
pool, 11, 12 ; sketch of, 37-40 j 
Canal workers leaving, 54 ; dis- 
tance from foreign ports, 63 

Colonias, Territory of, Bolivia, 
3 2 8> 344 

Colonization, in Peru, 138, 160 j 
in Chile, 272 ; in Bolivia, 340 

Colquechaca silver deposits, 318 

Colquiri, tin-mining district, 314 

Columbus, statue to, at mouth of 
Canal, 38 ; made search for pas- 
sage through Isthmus, 41 

Commercial traveller's need of 
Spanish, 23 

Compania National de Recaudacion, 
Peru, 176 

Concepcion, third largest city in 

Chile, 196 j coal mines in dis- 
trict, 229 
Condor, 72 
Consequencia silver mines, Chile, 

Continental Divide, see Cordillerac 
Coolies as plantation laborers, 158 
Copacabama, peninsula of, 326 
Copiapo district, silver mines, 229 ; 

seat of revolution, 233 
Copiapo Railway, 188 
Copper, in Ecuador, 70 ; in Peru, 
131, 1325 in Chile, 194, 195, 
228 j in Bolivia, 320-323 
Coquimbo, 189, 228, 229 
Cordilleras, 4, 42, 45, 51, 67, 74, 
123, 129, 130, 143, 149, 161, 
162, 188, 201, 269, 279, 297, 
3°5> 3 J 4> 3 26 > 34 2 - See also 
Cordoba, 5 
Corocoro copper mines, 183, 322, 

Coronel, coaling-station, 194, 195, 

Coropuna mountain, 109, 112 
Corpus Christi festival in Santiago, 

Cosmopolitan La Paz, 311, 312 
Cotagaita, tin district, Bolivia, 315 
Cotaigata Mountain, 286 
Cotopaxi, 60 
Cotton, in Peru, 69, 124-127, 147 $ 

in Bolivia, 329 
Council of State, Peru, 173 ; in 

Chile, 240 
Cousino family, controllers of Lota 

and Coronel, 195 
Cousino Park, Lota, 195 
Cousino Park, Santiago, 213 
Crucero Alto, summit of divide, 

Cuba, compared to Canal Zone, 5 1 ; 

U. S. relations toward, 361, 362 
Cuenca, Ecuador, 67 
Culebra Cut, 45, 5a 
Curarey River, 69 
Currency, paper, in Peru, 178 ; 

metal and paper, in Bolivia, 349 




Cuzco, Inca capital of Peru, 119, 

Darien, or Caledonian, cross-cut 
channel projected, 42 

Darsena at Callao, 83 

Deafness of infants in mountain 
regions, 310 

Death rate, see Birth and death rates 

Debt of Chile, 274 

De Costa, Senora Angela, originator 
of idea of statue " Christ of the 
Andes," 269 

De Faramond, Lieutenant Com- 
mander, French naval officer, 181 

De Lesseps, residence of, 38 

Departments of Bolivia, 344 

Deposits and depositors in Santiago 
Savings Bank, 256 

Desaguadero River, 299 

Desolation Islands, 197 

Deutsche La Plata Zeitung, 358 

Diary-making on Pacific steamer, 


Diseases, to be controlled by sani- 
tation, 19 ; incident to West 
Coast, 35 ; to life in Canal Zone, 
5*> 5*> 54» 55 > yellow fever at 
Guayaquil, 61 j fever at Arica, 

Dos de Mayo, Peru, mercury and 
coal district, 133 

Drake, Sir Francis, visit to Arica 
in 1579, 182 

Dress for travellers, 25 

Drinks, native, 26, 27 

Dudley, Minister, of Lima, 97, 
100, 126 

Duran, 65 

Earthquakes which have shaken 
Lima, 93 ; Arequipa, 116 j 
Arica, 182 

Ecuador, relation to Canal, 2 ; trade 
with U. S., 9 j foreign trade, 13, 
14, 63 5 railway exploitation, 65, 
66, 68 j topography, 67 5 prod- 
ucts, 68, 69 j minerals, 69 ; pop- 
ulation, 70 j financial standing 

and money, 71, 72 j banks and 

national debt, 72 
Editor, the ideal, 215, 216 
Edwards, Mr. Augustin, owner of 

El Mer curio, 214 
Elections, in Chile, 240 ; in Bolivia, 


El Mercurhy of Santiago and Val- 
paraiso, 214, 215, 363 

El Misti, extinct volcano, 109, 117 

Elmore, Judge Alberto, president 
of Council of State, Peru, 1903, 

El Oro, the gold country of Ecua- 
dor, 69 

Elsa mine, 324 

English ports distant from West 
Coast, 12, 13, 63 ; commerce, 
15, 16, 64, 84, 136, 196, 271, 
347 ; interests in oil fields, 131 j 
in railroads, 139, 140, 161 $ at 
Iquique, 185 j in nitrate fields, 
186, 227, 269; at Valparaiso, 
190 j advertising, 202 ; in San- 
tiago, 213 ; wheat trade with 
Chile, 263 j diplomatic relations 
with Bolivia, 346 ; concern with 
Monroe Doctrine, 352 et seq. 

English spoken in South America, 
22, 23 

Enock, C. Reginald, English engi- 
neer, 130 

Errazuriz, Frederico, former Chilean 
president, 235 

Escariano, 287, 291 

Esmeraldas, 63 

Eten, Port of, 79 

Eugenie, Empress, statue presented 

by, 3? 
Evangelist Islands, 196, 197 
Exchange, rates of, 34 

Farmer, comprehensive term !in 

Chile, 212, 213 
Fashions in Bolivian towns, 285, 

Ferrenafe, Peru, 79 
Ferrol, Bay of, 8 1 
Fever flower of Algiers, 181 



Fleas of Quilca, 114 

Fleteros, or boatmen, 75 

Foment de Fabric a , or Manufac- 
turers Association, of Chile, 272 

Foreign Commerce of the U. S.> An- 
nual Review 1904, table com- 
piled from, 9 

Foreigners, may hold municipal offi- 
ces in Peru, 175 ,• from colonies 
around Valdivia, Osorno, and 
Lake Llanquihue, 272 ; in Uyuni, 
296 j scarcity in Bolivia, 337 ; 
rights under the government, 345 

Forest lands of southern Chile, 264 

Fortunes of Chileans, 239 

Four Tears among the South Ameri- 
cans ', 66 

France in trade with Ecuador, 64 j 
with Peru, 127 

Fredonia, U. S. frigate, destroyed 
by tidal wave, 182 

Freight rates, 16-18 ; through 
freight along West Coast, 58 j 
on Peruvian sugar, 128; affected 
by Canal, 188 

French community at Valparaiso, 

Froward, Cape, 198 

Fruits, 28, 29 

Fuel saved by Canal ronte, 1 3 

Galapagos Islands, 70, 71, 357 
Galera tunnel, Central Railway, 

Garland, Mr. Alejandro, of Lima, 


Gatun, first view of Canal obtained 
from railroad at, 44 

Geographical Society of Lima, 152 

German colony, 157 ; immigrants 
desired, 1595 Germans in Val- 
paraiso, 190 ; in Bolivian rubber 
region, 3275 concern in Monroe 
Doctrine, 358 et seq. 

Germany, in trade with Ecuador, 
64 ; with Peru, 84 ; sends min- 
ister to Bolivia, 346 j trade with 
Bolivia, 347 

Gold, in Ecuador, 69 j in Peru, 

120,131, 132; in Chile, 2295 

in Bolivia, 282, 323-325 
Gold River of St. John, 324 
Gold standard, of Panama, 19 j of 

Peru, 177 ; of Chile, 2745 of 

Bolivia, 349 
Gottschalk, United States Consul, 

Granadilla fruit, 85 
Grape brandy, 85 
Grape culture in Chile, 265 
Grass cross over dwellings, 307 
Guachella, Senor Fernando, 34 
Guadalupe Mountain, 280, 286, 

291 ; district, 318 
Gualca, Indian who discovered sil- 
ver at Potosi, 318 
Guamote, Ecuador, 65 
Guanaco skins, 182 
Guano exported from Peru, 15, 79 ; 

Guano islands, or Chinchas, 85 
Guaqui, on Lake Titicaca, scene 

of Indian uprising, 339 
Guayacan copper mines, 228 
Guayaquil, distance from U. S. 

forts, 11, 145 from Panama, 1 2 $ 

sketch of, 61 j relation to Canal 

and commerce, 62, 63 j banks, 

Guayaquil Chamber of Commerce, 

Guayaquil, Gulf of, 60 
Guayas River, 60 
Guevara, Bachiler, forbidden to 

practise law in Quito, 67 
Gulf ports, trade with West Coast 

ports, 11 
Gum, see Rubber 

Haciendas, in Peru, 85, 155 ; in 
central valley, Chile, 263 

Hamburg, distance from West 
Coast ports via Panama, 1 3 5 from 
Guayaquil, 63. 

Harvard Astronomical Observatory, 
on Mt. El Misti, 117 

Hassaurek, Frederick, his impres- 
sions of Quito, 66. 

Hats, Ecuador's export trade in, 64 



Havre, distance from Guayaquil, 63 

Hay-Varilla Treaty, 46 

Hay, John, late Secretary of State, 
362, 363 

Holidays in Bolivia, 345 

Hotels, 29-3 1 

Huaca, of Trujillo, 815 of Supe, 82 

Hualgayoc district, Peru, silver- 
producing, 132 

Huallaga River, 6, 137 

Huamachuco, gold-producing dis- 
trict, Peru, 132 

Huamalies district, Peru, gold-pro- 
ducing, 132 j coal deposits, 133 

Huancavelica, silver-producing dis- 
trict, Peru, 132; mercury de- 
posits, 133 ; quicksilver mines, 

Huanchaca, town and mines, 318 

Huanchaca Company of Bolivia, 
their reduction works at Antofa- 
gasta, 187, 319 

Huanchaco, Port of, 80 

Huantayaja silver region, 229 

Huanuco, German colony, 157 ; 
district is gold-producing, 132 

Huaraz district, Peru, copper- 
producing, 132 ; iron and sul- 
phur deposits, 133 

Huarochiri, sulphur, coal, and lead 
deposits, 133 

Huaylas district, Peru, copper- 
producing, 132; coal-mining 
district, 133 

Huayna-Potosi, tin-mining district, 

3*4, 3*5 
Humboldt, Von, 2, 325 
Humboldt, or Antarctic, current, 

Hydraulic power of Andes to be 
developed, 130 

Ibarra, Ecuador, 69 

lea district, Peru, gold and copper 

producing, 132 
Illampu, series of peaks in Oriental 

Cordilleras, 305 
Illimani, in the Bolivian Andes, 

305, 306 

Immigration, 8, 138, 158, 163, 

272, 340 _ 
Inambari River basin, rubber in- 
dustry, 120, 136 ; gold-washings, 
Inca, Peruvian coin, 35, 177 
Inca Caracoles silver mines, 230 
Inca Company, headquarters in 

Arequipa, 116, 119, 120 
Indians, 25, 44, 75, 79, 105, 116, 
121, 136, 151-157, 181, 195, 
198, 199, 251, 285-287, 295, 

3°4> 3°5> 3 o8 > 3°9> 3 28 > 337- 

34o ^ 
Industrial establishments of Chile, 

Infiernillo (Little Hell or Devil's 

Bridge), on Central Railway, 

Ingenia, 287 
Inquisivi, tin-mining district, 3 14 j 

bismuth deposit, 325 
Intercontinental Railway Survey, 

70, 153 

Intercontinental railway, see Pan- 
American trunk line 

International Sanitary Bureau, 1 8 

Iodine found in nitrate deposits, 

Iquique, distance from Panama, 1 2 j 
shipping-point for soda nitrates, 
1 6 ; one of the three worst ports 
on West Coast, 86 j sketch of, 

Iquitos, 6, 7, 135, 148 

Iron, in Ecuador, 70 j in Peru, 133, 
147 ; in Chile, 227 

Irrigation, 86, 112, 124, 125, 127, 
130, 142, 159, 276 

Isla de Plata, Silver Island, 

Islands of Direction, same as Evan- 
gelist Islands 
Islay, Bay of, 87 ; town, 88 
Italia, wine made in Pisco district, 

Italians, in Lima, 96 ; agricultural 

immigrants, 159, 160 
Ivory nut, see Tagua 



Jauja, valley of, presents possibili- 
ties for irrigation, 142 
Jebe, best quality crude rubber, 134 
Jones, Mr. Champion, of Lima, 90 
''Journalism, The Land of," 214 
Juliaca, on Southern Railway, Peru, 

1 19, 121 
Junin, town and lake, 106, 222 

Kaolin, in Chorolque district, 

Bolivia, 320 
Kelley, Frederick M., 42 
Kraus, Jacob, Holland engineer, 


La Boca, railway terminus at 
Pacific mouth of Canal, 46 

Laborers, on Canal, 50 ; in Piura 
cotton lands, 125 ; in Peruvian 
rubber forests, 1365 Indian and 
cholo, 155 ; Chinese coolies, 1585 
mine workers needed, 159 ; at 
Iquique, 185 ; in nitrate fields, 
223 ; Chilean roto, 251-255 j 
in Chilean factories, 267 5 Bo- 
livian cholos, 340 

Laca-Amra River, Bolivia, 299 

U Africaine, government railway 
concession, 341 

La Lei, Santiago newspaper, 215 

La Mar, gold-producing district, 
Peru, 132 

Lambayeque region of Peru, 79, 
129, 133 

Land-owners in central valley, Chile, 

La Paz, Bolivia, hotels, 30 ; trav- 
ellers to, 300 j sketch of, 310,- 
tin mined in district, 315 ; in 
gold district, 324 j Aymara in- 
habitants, 338} elevation of, 
341 j Department in revolution of 
1898, 343 

La Quiaca, on Argentine frontier, 

Larecaja placers of Tipuani, Bolivia, 

.3*4 m 
Larez district, Peru, iron-producing, 


Lastarria, J. V., Chilean diplomat 

and historian, 250, 251 
La Vie Latine, 366 
" Law, The," Santiago newspaper, 

215 ^ 
Lead, in Ecuador,. 70 j in Peru, 

1325 in Chorolque district, 

Bolivia, 320 
Leger, Minister, of Haiti, 362, 363 
Leguia, Senor, of Peru, 171 
Le Perou, Auguste Plane, 145 
Lima, Peru, pure Spanish spoken, 

24 } hotel, 30 j sketch of, 89- 

100; censuses, 152 j scene of 

revolution, 164 
Limon, Bay of, 37 
Lipez, silver deposit, 3185 copper 

deposits, 321, 323 
Live-stock industry, 8, 121, 133, 

134, 263 
Llai-Llai, 202 

Llama, disposition of the, 309 
Llanquihue district exports lumber, 

264 ; colony on lake, 272 
Lobos Islands, 79 
Loja, in mining district of Ecuador, 

Lomas, 85 
Lopez de Guevara had scheme for 

three canals, 43 
Loreto, Department of, centre of 

Peruvian rubber district, 1345 

variations in government, 173 
Los Andes, location of spiral tun- 
nel, 202 
Lota, 194, 195 ; copper product of 

distriet, 228 ; iron mines, 229 
Lottery at Lima, 95 ; at Santiago, 

Louisiana Purchase, resources of 

the, 3 
Luya district, Peru, gold-producing, 


Machacamarca smelting works, 

Machala, 63, 67 
MacKenna, Benjamin V., historian, 




Madre de Dios rubber region, 

Magellan, Territory of, 264, 

Majo, Bolivia, 279, 280 
Malmowslci, engineer of Central 

Railway, 101 
Manserriche, Falls of, 6, 78, 147, 

Manufactories, of Lima, 99 3 of 

Chile, 266 
Manufacturers* Association of 

Chile, 265, 272 
Manzanillo, Island of, 37, 40 
Mapocho River, Santiago, 207 
Maranon River, 6, 78, 80, 132, 

*37* I47J/48 

Maravillas, silver-smelting plant lo- 
cated at, j 1 9 

Marcapata valley, 136 

Marriage customs among Indians, 

i55> 309 

Martinez, Mr. Juan Walker, 211, 

Mathieu, Mr., former Secretary of 
Chilean Legation, 312 

Matte, Mr. Auguste, 211 

Matucana, 104 

Meals, customs concerning, 27 

Meier, Mr., American consul at 
Mollendo, 114 

Meiggs, Henry, builder of Central 
Railway of Peru, 100, 101, no, 
149, 203 

Meiggs, Mt., on Central Railway, 
Peru, 104 

Merchant marine of Chile, 270, 271 

" Mercury, The," of Santiago and 
Valparaiso, 214, 215 

Mercury-cinnabar, Peruvian dis- 
tricts which produce, 133 

Mestizos, 27,151, 154, 155, 337 ; 
compare with Cholos. 

Methodist Mission at Iquique, 

Mexico of South America, Bo- 
livia, 313-330 

Mica deposits near Quilca, 114 

Military party in Chile, 260 

Mills, cotton, in Peru, 126 
Milluni, tin-mining district, 314, 


Mineral waters, 26 

Mineral wealth, of Andes, 4 j of 
Ecuador, 69, 78, 81 ; Peruvian 
deposits, 106, 107, 117, 120, 
122, 130-133, 146 ; Chilean de- 
posits, 217-231, 276; Bolivian 
deposits, 282, 294, 313-326 

Mining-code, the Peruvian, 133 

Mississippi Valley will benefit from 
Canal, 12 

Molina, Father, Jesuit naturalist, 

Mollendo, distance from Panama, 
12 j trade passing through, 145 
relation to Arica, 16 ; one of 
three worst ports on West Coast, 
86 ; railway terminus and harbor 
improvements, 88 ; trade, 88 ,• 
use of Panama Canal, 88 

Monastery of San Francisco, Lima, 

97, 9 8 

Money, South American, 34 5 Ec- 
uadorian, 72 

Monroe Doctrine in South America, 

70, 35 J -37i 

Montana region, 68, 123 

Monte Cristo, from Bay of Caracas, 

Montes, President Ismael, of Bo- 
livia, 314, 332, 343, 345 

Montt, Director of National Li- 
brary, Santiago, 207 

Montt, Captain Jorge, Chilean in- 
surrectionist, 237 

Montt, Manuel, former Chilean 
president, 233 

Moquegua district, Peru, sulphur- 
producing, 133 

Morgan, Sir John, sacked Panama, 

4i> 45 
Mountain travel, supplies for, 32, 

33 m 
Mule in Andean use, 33 

National Library, Lima, 97 
National Library, Santiago, 206 



National Tax Collection Society, 

Naturalization of foreigners in Peru, 

Naval school at Talcahuano, 195 

Nazarene, on San Juan River, 280 

Negro element, in Panamenans, 445 
blacks engaged in Canal excava- 
tion, 50 ; in railway building, 
66 } in Peruvian population, 157, 

Neill, Mr. Richard, Secretary 
American Legation, Lima, 96 

New Orleans, distance from West 
Coast ports, 7, 11, 14, 63 

New York, relative position with 
reference to West Coast ports, 
7, 1 1 ; distance from Colon, 1 2 5 
from Valparaiso, 12 ; from 
Guayaquil, 14, 62 ; from Callao, 


New York Chamber of Commerce, 
statistics from, 1 3 

Newspapers, Chilean, 199, 213- 

Nicaragua Canal, one of three pro- 
posed by Lopez de Guevara, 43 

Nitrate kings, 184, 219 

Nitrates of soda, exports from Chile, 
16 j shipments from Iquique, 
16, 186 j the product, 217-231, 
276, 277 

Noco, plain of, 86, 125 

North, Colonel, the nitrate king, 

Nudos in inter- Andine region, 67 

Oaths, Spanish, 24 

O'Higgins, liberator of Chile, 204, 
232, 355 m 

Old age attained by Bolivian peas- 
ants, 281 

Olney, ex-Secretary, 357 

Oranges of Pacasmayo, 79 

Orcoma, nitrate district, 224 

Oregon, Webster's valuation of, 3 

Oropesa, S. S., 191, 196 

Oroya, on Central Railway, Peru, 
101, 105, 107 

Oroya Railway, same as Central 

Oruro, hotel at, 30 ; town seen 
from hills, 293 ; sketch of, 299 ; 
tin and silver mines in vicinity, 
314-317, 320 

Osorno, colony at, 272 

Otuzco district, Peru, gold-produc- 
ing, 132 

Ovalle, copper mines in the district 
of, 228 

Pacasmayo, 79, 80 

Pacific Company, concessions to, 


Pacific Ocean, trade influenced by 
Canal, 1-20 > described by Friar 
Calancha, 57 j Pacific steamers, 
57 } Southern ocean rough, 194 

Pacific Steam Navigation Company, 
Valparaiso office, 249 

Paita, distance from New York, 7 ; 
from Panama, 12 $ sketch of, 
74-78 5 selected as terminus of 
projected railroad, 147 j district, 
sulphur deposits, 133 

Paita, Bay of, 6, 74 

Pallasca district, Peru, silver- 
producing, 132 } lead deposits, 


Palma, Dr. Ricardo, Director Na- 
tional Library, Lima, 97 

Paita, or alligator pear, 28 

Panama Bay, 58 

Panama Canal, industrial develop- 
ment due to the, 1-20 ; toll 
rates, 11, 15 ; relation to Chilean 
trade, 16 ; entrance, 37 j pro- 
posed routes, 40-43 j route 
adopted, 44,- villages and in- 
habitants along course, 44 ; 
Culebra Cut, 45 ; U. S. author- 
ity in Canal Zone, 46-50 ; san- 
itation and hygiene in Canal 
Zone, 50-53 ; American em- 
ployees, 53-55 ; instrument in 
development of Panama, 55 ; 
Guayaquil trade will pass through, 
62, 64 ; Amazon traffic will pass 



through, via Paita, 78 ; effect 
upon Callao, 84 J Peruvian traffic, 
88, 125, 128, 131, 135, 139, 
145, 183 } outlet for Cerro de 
Pasco mines, 107 ; will further 
Italian immigration, 160 $ rela- 
tion to Iquique and the nitrates, 
186, 227 ; will tend to lower 
ocean freight charges, 188 j 
bearing on Valparaiso as harbor, 
193 i relation to Punta Arenas, 
199; effect on Chilean commerce, 
270 ; value to Bolivia, 331, 332, 

Panama, City of, distance from 
Colon, Guayaquil, Paita, Callao, 
Mollendo, Arica, Iquique, An- 
tofagasta, and Valparaiso, 12 j 
growth of, 3 9 ,• sacking by Mor- 
gan' s buccaneers, 41, 45 ; sketch 
of, 45 j distance from Guayaquil, 

Panama, Isthmus of, 3 $ sanitary 
conditions on, 18 j gold stand- 
ard in, 19 ; waterways which 
have been projected, 41 5 Cham- 
plain conceived project of cutting 
through, 43 j geographical posi- 
tion, 43 j natives and villages, 
44 j government of, 46, 47 ; 
area, wealth, industries, and agri- 
culture, 48 j good to be derived 
from Canal, 49 

Panama Railway, 17 ; statue to 
builders, 39 ; hygienic work of, 

Panamenans, the, 44 
Pan-American Conference, 18 
Pan-American trunk line, 4 
Pando, General, former President 

of Bolivia, 345 
Pandura, 303 

Pansio silver mines, Chile, 230 
Paper money prohibited in Peru, 

Para, Peruvian rubber metropolis, 7 
Pardo, Senor Jose, President of 

Peru, 169-172 
Parties, political, in Chile, 246 

Pataz distiict, Peru, silver-produc- 
ing, 132 

Patterson, William, his scheme for 
canal through Isthmus, 42 

Paucartambo district, gold-produc- 
ing, 132 

Peachy, American traveller in Peru, 


Pelicans, 79 

Perez, Carlos, surveys and explora- 
tions of, 142 

Perez, Jose Joaquin, former Chilean 
president, 233 

Permanent Industrial Exhibition, 

Pernambuco, distance from the Cape 
and New York, 1 2 

Peru, relation to Canal, 2 ; rubber 
industry, 7 5 foreign commerce, 
14, 155 description, 73 et seq. 

Peruvian Congress, 175 

Peruvian Corporation of London, 
101, 107, 119, 139, 140, 142, 
143, 160, 161, 333 

Peso, value of, 274 

Petacas> or leather trunks, 32 

Petroleum, fields of Peru, 78, 122, 
131, 1325 districts which pro- 
duce, 133 ; deposits along shores 
of Lake Titicaca, 326 3 crude 
product used in Caupolican Prov- 
ince, 326 

Phillips, Mr., editor of La Lei, 
Santiago, 215, 216 

Pichis, or central highway, 142-146 

Pierola, General, President in 1896, 
143, 167, 170, 177 

Pinto, Anibal, former Chilean 
president, 235 

Pisagua, in nitrate and guano region, 

Pisco, 85 

Piura, in northern Peru, 78 

Piura region, aridity of, 76, 77 j 
cotton cultivation, 124, 147 $ 
American project for irrigating, 
1255 district produces petroleum 
and iron, 133 

Pizarro, 41, 74, 80, 90, 92, 116 



Plane, A., French engineer in Peru, 


Play a Blanca, ore-smelters of 
Huanchaca Company at, 320 

Political history of Chile, 232- 

Political parties in Chile, 246 

Poopo, Lake, 298 ; tin mines in 
Province of, 314 

Population, growth in South Amer- 
ica, 3,4; in valley and mountain 
regions, 6 ; in cereal region, 8 5 
in Ecuador, 705 m trans- Andine 
country, 138} in Peru, 1 5 1-1 6 3 j 
of Chile, 271, 272 } region be- 
tween Oruro and La Paz, 306 j 
of Bolivia, 336-341 

Porco, tin-mining district of Bo- 
livia, 315 ; silver deposits, 318 j 
copper, 322 

Portugalete Pass, 291 j silver mines 
in district, 318 

Postal service, 144 

Potosi, silver mines, 293, 318, 319 ; 
tin mines, 314-316 j need for 
railroad facilities, 319, 335 

Prat, naval hero, statue to, 190 

Presidential office, in Chile, 239 j in 
Bolivia, 344 

Priests, in Chilean social life, 212 j 
Bolivian priesthood, 307 

Prieto, Joaquin, former Chilean 
president, 233 

Professional classes, dress of, 25 

Projects for cutting through Isth- 
mus, 40, 41 

Protective policy of Chile, 266 

Protestant churches in Peru, 174 

PucherOy Spanish dish, 28 

Pulacayo, most productive silver 
mine in South America, 294, 

Puna, customs and quarantine port, 

Puno, on Lake Titicaca, 121, 122 ; 
district produces coal, petroleum, 
and mercury, 133 

Punta Arenas, southernmost town, 

Quail in barren country, 288, 292 
Quarantine regulations, 33, 34, 63 
Quiaca River, on Bolivian boun- 
dary, 379 
Quichua, or aboriginal Indian race 
of Peru, 105, 154, 157, 281, 

*9 2 > *93> 3°4> 338 
Quicksilver mines of Huancavelica, 

Quilca, 113, 114 
Quinine industry, 329 
Quinta Normal, or Agricultural 

Experiment Station, Santiago, 

Quinua, native cereal, 307 
Quiros River, irrigation from, 125 
Quisma Cruz, or Three Crosses, in 

Oriental Cordilleras, 305 
Quito, 6$, 66 

Racing a feature at Santiago, 213 
Railroads, through Andes, 4, 162, 
188 5 line joining Buenos Ayres 
and Valparaiso, 5 ; proposed 
Argentine and Bolivian lines, 5, 
15 ; passenger rates, 31 ; devel- 
opment in Panama, 49 ; lines 
and projects in Ecuador, 65-69 ; 
survey through mining region, 
70 ; Peruvian line, 78 ; road 
from Eten, 79 ; project for 
road from Cajamarca, 80 ; line 
from Chimbote, 82 ; from Pisco 
to lea, 85 ; Central (Oroya) 
Railway, 100-107 5 American 
syndicate road between Oroya 
and Cerro de Pasco, 107 j line 
to Lake Titicaca, no j extension 
from Sicuani, 119; engineering 
in Province of Carabaya, 119 ; 
projected line along Inambari 
River, 120; motive power fur- 
nished by river Rimac, 130 j use 
of oil as fuel, 131 ; Peruvian 
lines, 138-142, 145-150 ; pro- 
posed line out from coffee district, 
1 6 1 j road from Arica to Tacna, 
182 ; extension to La Paz, 183 j 
lines in nitrate district, 187, 219, 



221, 222 ; Copiapo Railway, 
1 88 j passenger accommodations, 
202 j William Wheelright's 
road, 203 j Chilean railroad 
policy, 267-269, 275 ; Bolivian 
roads, 278, 314, 33 2 ~3 3 6 > 
mines await railroads, 319-321 j 
Antofagasta and Oruro Railway, 
3365 concession granted by Bo- 
livia, 341 ; treaty with Chile, 
347, 348 5 West Coast railway 
development, 351 et seq. 

Raimondi, surveys of Department 
of Anacho, 130 5 description of 
central plateau of Bolivia, 297 

Raspadura channel, possible route 
across Isthmus, 43 

Rates of transportation of products, 
17, 18 

Reclus, representing French com- 
pany in exploiting Darien route, 

Reconnaissance Report upon the Pro- 
posed System of Bolivian Rail- 
ways, Sisson, 335 

Recuay district, Peru, silver and 
coal producing, 132 

Reloncavi, Bay of, at the head of 
Gulf of Ancud, 262 

Revenue, of Peruvian government, 
176 ; of Bolivian, 346 

Revolutions, in Peru, 1645 in Bo- 
livia, 343 

Rice product of Peru, 79, 129 

Richest woman in the world, the 
widow Cousino, 195 

Riesco, President Jerman, of Chile, 

Rimac valley, Peru, 103, 130 

Rivadiva mission to Europe, 355 

Road-building, in Panama, 49 j in 
Peru, 120 

Roman Catholic Church, in Peru, 
157, 1745 m Chile, 208, 242, 
243 j attitude of roto toward, 
2 53> 2 54 j in Bolivia, 307, 

Romaiia, ex-President Edward, of 
Peru, 115 

Roosevelt, President, 47, 70, 3*7, 


Root, Mr. Elihu, 357 

Roto, 248-259, 264 

Royal Andes, 280 

Rubber, demand for, 7 ; Ecuador's 
product, 68, 69 ; shipped through 
Mollendo, 88 ; on San Gaban 
River, 120 ; in Coast Region, 
Peru, 124; Peruvian forests, 
134-136, 138} Bolivian product, 
327, 328 

Saddles for mountain travel, 32 

Sailors, members of Chilean roto 
as, 254 

Sala, Father, surveys and explora- 
tions of, 142 

Salaverry, Peru, sugar from, 145 
volume of trade and unique in- 
scription, 81 

Salisbury, Lord, 357 

Salt fields east of Punta de Lobos, 

Saltpetre fertilizers, see nitrates 

Sambo, origin of name, 158 

San Bartholomew, tunnel in Cho- 
rolque district, 320 

San Bartolomew, on Central Rail- 
way of Peru, 103 

San Bias route proposed for Canal, 

Sandia district, gold in, 120, 132 

San Gaban River, 120 

Sanitary conditions along Canal, 1 8 , 
50-52, 54, 55 ; in Lima, 99, 
100 j among Peruvian Indians, 
157 5 in Santiago, 207, 258, 259 

San Jose mine, near Oruro, 300, 

San Juan River, 324 

San Leon, tunnel at entrance of 
Pulacayo mine, 319 

San Lorenzo, Island of, in harbor 
of Callao, 85 

San Martin, statue to, Santiago, 

San Mateo, on Central Railway of 
Peru, 103 



San Miguel Bay named, 41 

Santa Cruz, Department of, gum 
forests awaiting development, 
327 j the capital, 341 

Santa Lucia, mountain in Santiago, 

Santa Maria, Domingo, former 
Chilean executive, 236 

Santa Rosa, ranch of, near Are- 
quipa, no 

Santa Rosa valley, Bolivia, 282 

Santiago, hotels at, 30, 315 sketch 
of, 203-216 ; social questions, 
250 j savings bank, 256 ; birth 
and death rates in province, 257 

Santo Domingo, U. S. policy 
toward, 359 

Santo Domingo gold mines, Prov- 
ince of Carabaya, 116, 119, 122 

San Vicente, Sierra of, 292 

Saracocha, Lake, 118 

Savedro, Senor Don Angel, pro- 
jected waterway through Isth- 
mus, 42 

Savings Bank, Santiago, 256 

School system of Peru, 1575 school 
conducted in Aymara language, 
304, 305 ; Bolivian school sys- 
tem, 344, 345 

Selfridge, Commander, 42 

Sexes, even ratio of the, 337 

Sheep-raising, 133, 264 

Shipping interests of Chile, 270, 271 

Sicasica, at an altitude of 14,000 
feet, 304 

Sicuani, 119 

Silva, Mr. , leader writer on El Mer- 
curio, 215 

Silver, in Ecuador, 70 ; in Peru, 
107, 131, 132 ; in Chile, 229 j 
in Bolivia, 304, 318-321 

Sinopsis Estadictica y Geografica de 
la Republic a de Bolivia, 342 

Siroche, or mountain sickness, 104, 
118, 288-291 

Sisson, W. L., 335 

Smythe's Channel, 196 

Socavan of the Virgin, silver mine 
in Oruro district, 321 

Social question in Chile, 207, 248- 

Socialistic doctrines at work in 
Chile, 254 

Society, in Lima, 95, 96 ; in San- 
tiago, 210-213 

Sol, Peruvian coin, 35, 177 

Solano, Father Francis, founder 
of Franciscan Order in Peru, 

Sorsby, Minister, of La Paz, 311 

South America, 1854-IQ04, Akers, 

South American Steamship Com- 
pany offices burned by mob, 249 

Southern Cross, 57 

Southern Railway, 101, 120, 149, 


Southernmost town of world, Punta 
Arenas, 198-200 

Spanish administrative system to be 
moulded on American model, 48 

Spanish-American, the, 2 

Spanish language, needed by trav- 
ellers, 21-25 ; spoken in its 
purity at Lima, 95 ; native hos- 
tility toward, 157, 338, 339 

State ownership of Chilean railways, 

Steamships, in West Coast foreign 
trade, 11; in nitrate trade, 16 ; 
in West Coast passenger service, 
57, 58 j in Guayaquil trade, 62; 
trading at Callao, 84 ; at Valpa- 
raiso, 191 j in Chilean trade, 270, 

Stephens, John L., statue to, 39 

Strike in Valparaiso, 248, 249 

Stumpff, engineer Elsa Mine, 324 

Succession in office in Peru, 168 

Suches, placer washings in gold 
district, Bolivia, 323 

Sucre, 72. 

Sucre, old capital of Bolivia, 298, 


Sugar-beet industry, 265 

Sugar industry, in Peru, 14, 18, 

127, 128 ; in Ecuador, 69 ; 

amount shipped via Pacasmayo, 



79 5 through Huanchaco, 80 j 
industry in Chile, 265, 266 

Suipacha, on San Juan River, 

Sulphur beds, near Bay of Sechura, 
78 ; on Lake Titicaca Railroad, 
117 ; Peruvian provinces which 
produce, 133 

Supe, the landing-place, 82 

Superunda, Count, memoirs of, 93 

Taboga Isle, 45 

Tacna, Pampas of, 224 j tin mines 

in district, 315 
Tacora, Mt., in Bolivia, 183 
Taft, Secretary, 47 
Tagua, or ivory nut, Ecuador's 

production of, 64 
Talcahuano, naval port, 195 
Taltal, nitrate shipping-port, 188 
Tambilla, 292 
Tambo de Mora, 86 
Tambos, or inns, 31 j one at Majo, 

Bolivia, 279 
Tarapaca, Province of, lost to Chile, 

152, 217 j saltpetre region, 217- 

Tarata, sulphur-producing district, 

Peru, 133 
Tarija, capital of agricultural region 

in southeast Bolivia, 341 
Tarma, coal-mining district, Peru, 

Taxes, in Peru, 176 j in Bolivia, 


Tayacaja district, Peru, gold-pro- 
ducing, 132 

Tehuantepec Canal, one of three 
proposed by Lopez de Guevara, 


Telegraph line from Lima to Ber- 
mudez, 144 

Telegraph line, monument com- 
memorating completion of, San- 
tiago, 205 

Timber lands of southern Chile, 

Tin product of Bolivia, 314-317, 

Tipuani placer washings in gold 

district, Bolivia, 323 
Tirapata, railroad station for mines 

of Carabaya Province, 1 1 9 
Titicaca, Lake, trip from Are- 

quipa to, 1 17-122 
Tobacco, crop in Ecuador, 69 j 

tax in Peru set aside for railroads, 

Toll rates through Canal, 13, 15 
Tombs at Caracollo, 302, 303, 

Trades unions in Chile, 250, 251 
Travellers, should practise customs 
of natives, 21 ; need for knowl- 
edge of Spanish, 21-25 5 dress, 
25 ; eating and drinking, 26- 
29; hotels, 29-31 ; care of bag- 
gage, 31; railroad fares and night 
trains, 3 1 ; charges for embarka- 
tion and disembarkation, 32 j 
supplies for mountain travel, 32, 
33 ; fodder for animals, 33 j 
quarantine regulations, 33, 345 
money, 34 ; diseases, 35; friction 
with natives and officials in Peru, 


Treasure islands, 73 

Treaty between Bolivia and Chile 
ratified 1905, 347, 348 

Treaty of Ancon, 8 3 

Trujillo, 81 

Trunks carried on pack animals, 

Tucapel, West Coast vessel, 82 

Tucker, surveys and explorations 
of, 142 

Tucuman, 5, 188 

Tumbez, 73, 74 5 district, oil-pro- 
ducing, 1 3 1 5 sulphur and petro- 
leum deposits, 133 

Tupiza, Bolivia, hotel at, 30 3 
sketch of, 283-286 

Ubina Mountain, 286 
Ucayali River, 137, 146 
Union Club, Santiago, 211 
Union district, Peru, gold-producing, 



United States, trade with Argentine, 
9j with West Coast countries, 
10; policy toward Canal, iij 
direct benefit derived, 125 author- 
ity in Canal Zone, 17-20, 37-40 

University of San Marcos, Lima, 


Uruguay, grain and cattle in- 
dustries in, 8 

Uyuni, Bolivia, 293-296, 315 

V's and VV's, 102 

Valdivia, Pedro, statue to, at San- 
tiago, 203 

Valdivia Province, 229, 264 j town, 

Valparaiso, distance from Panama 
and New York, 12 ; from Liver- 
pool, 13 j hotels, 31 j sketch of, 

Vegetable ivory, same as Ivory 

Verrugas, on Central Railway of 
Peru, 103 

Verrugas, or bleeding warts, 103 

Vice-presidency in Chile, 243 

Vicuna, Archbishop, memorials to, 
at Santiago, 204 

Vicuna high-grade wool and rugs, 
116, 122, 182 

Vicunas, 118, 133 

Vilcanata River, 119 

Village life in Bolivian Andes, 280 
et seq. 

Villamil family controlled Larecaja 
properties, 324 

Villa Villa, Bolivia, 303 

Villazon, Senor, Vice-president of 
Bolivia, 343 

Vina del Mar, seashore resort near 
Valparaiso, 213 

Vincocaya, 118 

Vineyards of Pisco, 85 

Vitor, no 

Vitor River, 113 

Von Billow, Chancellor, 358 

Von Hassel, surveyor and explorer, 

Von Stenberg, Baron, 358 

Washington, Booker T. , his work 
a subject of discussion, 215 

Wateree, U. S. frigate, carried in- 
land by tidal wave, 182 

Water-fowl, 117 

Watermelons of Pisco, 86 

Webster, Daniel, 3 

Weed-killing plant in use on tropi- 
cal railway, 6$ 

Werthemann, surveys and explora- 
tions of, 142 

Wetherill system in San Jose smelt- 
ing works, 321 

Wheat shipped from central valley, 

Wheelright, William, pioneer rail- 
road builder of Chile and Argen- 
tina, 188, 190, 203 

White Spirit of the Illimani, an- 
cient deity of Bolivian Indians, 

Whitehead, American traveller in 
Peru, 153 

Wines, imported and native, 26 ; 
Italia, wine made in Pisco dis- 
trict, 85 

Wireless telegraphy station at south- 
ernmost town of the world, 

Wolfe, surveys and explorations of, 

Wolfram in Chorolque district, 
Bolivia, 203 

Women, conductors on Santiago 
tramways, 205 ; Chilean, 212 ; 
Bolivian Indian, 309 

Wood, Rev. Dr., Methodist clergy- 
man in Lima, 162 

Wool trade, 12, 264 

Woollens needed by travellers, 

Wyse, representing French com- 
pany in exploiting Darien route, 


Yani River placer washings, 324 
Yauli, on Central Railway, Peru, 
103 5 silver and copper deposits, 
132 j lead deposits, 133 



Yauyos, coal-mining district, Peru, 


Yavari River, frontier, rubber in- 
dustry, 136 

Yunca Indians, 154. 

Yura, iron and sulphur springs, 115 

Yuracares, department of Cocha- 
bamba, produces a species of 
rubber tree, 327 

Yurimaguas on the Huallaga River, 

6, 80 
Yuruma, village in Royal Andes, 


Zambo, same as Sambo 
Zaruma, centre of gold-mining re- 
gion, 69 
Zarzuela, or one-act comedy, 212 


Commercial relations of West Coast 
with United States, 9 

Distances of shipping ports on West 
Coast to trade centres, 12 

Distances and elevation above sea- 
level of the Central Railway of 
Peru, 102 

Mineral output of Peru for one 
year, 132 

Itinerary from Lima to Iquitos via 
Central Highway, 144 

Distances on railway from Paita to 

Piura, 148 
Product of the nitrate zone, 

Tin product of Bolivia, 316 
Metals found in combination with 

copper, Bolivia, 322 
Population of Bolivia, 337 
Temperature and products of zones, 

Bolivia, 342 
Rainfall, Bolivia, 343